II
110th CONGRESS
1st Session
S. 516
IN THE SENATE OF THE UNITED STATES
February 7, 2007
Mr. Pryor (for himself, Mr. Warner, and Mrs. Lincoln) 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 make permanent the option of including combat pay when computing earned income.
Short title
This Act may be cited as the
Tax Relief for Americans in Combat
Act
or the TRAC
Act
.
Earned income includes combat pay
Earned income credit
Clause (vi) of section 32(c)(2)(B) of the Internal Revenue Code of 1986 is amended to read as follows:
a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.
.
Repeal of EGTRRA sunset applicability
Section 105 of the Working Families Tax Relief Act of 2004 shall not apply to the amendments made by section 104(b) of such Act.
Effective date
The amendment made by subsection (a) shall apply to taxable years ending after December 31, 2006.