H.R. 2491

Tax Relief and Fulfilling Our Obligation to Patriotic Soldiers Act of 2009

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I

111th CONGRESS

1st Session

H. R. 2491

IN THE HOUSE OF REPRESENTATIVES

May 19, 2009

Mr. King of New York introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to exclude from gross income any enlistment, accession, reenlistment, retention, or incentive bonus paid to a member of the Armed Forces.

1.

Short title

This Act may be cited as the Tax Relief and Fulfilling Our Obligation to Patriotic Soldiers Act of 2009.

2.

Exclusion from gross income of enlistment and reenlistment bonuses for members of the armed forces

(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)

Qualified bonus

Gross income does not include a qualified bonus.

.

(b)

Qualified bonus defined

Subsection (d) of section 112 of such Code (relating to definitions), as redesignated by subsection (a), is amended by adding at the end the following new paragraph:

(6)

Qualified bonus

(A)

In general

The term qualified bonus means an enlistment, accession, reenlistment, retention, incentive, or other bonus paid by the Secretary concerned to a member of the Armed Forces of the United States in exchange for the agreement of the member to accept a commission as an officer, extend an active service commitment as an officer, enlist, reenlist, or extend an enlistment as an enlisted member in an active or reserve component, or enter into a reserve affiliation agreement.

(B)

Other definitions

For purposes of subparagraph (A), the terms active service, enlisted member, officer, and Secretary concerned have the meanings given to such terms in section 101 of title 10, United States Code.

.

(c)

Conforming amendments

(1)

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

(2)

The heading for section 112 of such Code is amended by inserting and other before compensation.

(3)

Section 3401(a)(1) of such Code is amended by inserting and other before compensation.

(4)

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 112 and inserting the following new item:

Sec. 112. Certain combat zone and other compensation of members of the Armed Forces.

.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.