109th CONGRESS
2d Session
S. 3959
To amend the Internal Revenue Code of 1986 to exclude from gross
income certain combat zone compensation of civilian employees of the United
States.
IN THE SENATE OF THE UNITED STATES
September 27, 2006
Mr. WARNER (for himself and Mr. ALLEN) 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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Employee Combat Zone Tax Parity Act'.
SEC. 2. 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:
`(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 paragraph 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- The term `employee' has the meaning given such term by
section 2105 of title 5, United States Code.
`(B) ACTIVE SERVICE- The term `active service' means active Federal
service by an employee.'.
(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:
`SEC. 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.
END
