S. 1166 – Reading Mode

110th CONGRESS

1st Session

S. 1166

IN THE SENATE OF THE UNITED STATES

April 19, 2007

Mr. Warner introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to exclude from gross income certain combat zone compensation of civilian employees of the United States.

Short title

This Act may be cited as the Federal Employee Combat Zone Tax Parity Act.

Exclusion from gross income for certain combat zone compensation of civilian employees of the United States

(a)

In general

Section 112 of the Internal Revenue Code of 1986 (relating to certain combat zone compensation of members of the Armed Forces) is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection:

(c)

Civilian employees of the United States Government

(1)

In general

Gross income does not include so much of the compensation as does not exceed the maximum amount specified in subsection (b) for active service as an employee of the United States for any month during any part of which such employee—

(A)

served in a combat zone, or

(B)

was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone; but this subparagraph shall not apply for any month beginning more than 2 years after the date of the termination of combatant activities in such zone.

(2)

Definitions

For purposes of this subsection—

(A)

Employee of the United States

The term employee of the United States has the meaning given such term by section 2105 of title 5, United States Code, and includes—

(i)

an individual in the commissioned corps of the Public Health Service or the commissioned corps of the National Oceanic and Atmospheric Administration, and

(ii)

an individual not otherwise described in the preceding provisions of this subparagraph who is treated as an employee of the United States or an agency thereof for purposes of section 911(b).

(B)

Active service

The term active service means active Federal service by an employee of the United States.

(b)

Conforming amendments

(1)

Section 2201(b) of such Code is amended by striking 112(c) both places it appears and inserting 112(d).

(2)

The heading for section 112 of such Code is amended to read as follows:

112.

Certain combat zone compensation of members of the Armed Forces and civilian employees of the United States

(3)

The item relating to section 112 in the table of sections for part III of subchapter B of chapter 1 of such Code is amended to read as follows:

Sec. 112. Certain combat zone compensation of members of the Armed Forces and civilian employees of the United States.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.