Text: H.R.2778 — 104th Congress (1995-1996)All Information (Except Text)
Public Law No: 104-117 (03/20/1996)
[104th Congress Public Law 117]
[From the U.S. Government Printing Office]
[[Page 110 STAT. 827]]
Public Law 104-117
To provide that members of the Armed Forces performing services for the
peacekeeping efforts in Bosnia and Herzegovina, Croatia, and Macedonia
shall be entitled to tax benefits in the same manner as if such services
were performed in a combat zone, and for other purposes. <<NOTE: Mar.
20, 1996 - [H.R. 2778]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. <<NOTE: 26 USC 112 note.>> TREATMENT OF CERTAIN INDIVIDUALS
PERFORMING SERVICES IN CERTAIN HAZARDOUS DUTY AREAS.
(a) General Rule.--For purposes of the following provisions of the
Internal Revenue Code of 1986, a qualified hazardous duty area shall be
treated in the same manner as if it were a combat zone (as determined
under section 112 of such Code):
(1) Section 2(a)(3) (relating to special rule where deceased
spouse was in missing status).
(2) Section 112 (relating to the exclusion of certain combat
pay of members of the Armed Forces).
(3) Section 692 (relating to income taxes of members of
Armed Forces on death).
(4) Section 2201 (relating to members of the Armed Forces
dying in combat zone or by reason of combat-zone-incurred
(5) Section 3401(a)(1) (defining wages relating to combat
pay for members of the Armed Forces).
(6) Section 4253(d) (relating to the taxation of phone
service originating from a combat zone from members of the Armed
(7) Section 6013(f)(1) (relating to joint return where
individual is in missing status).
(8) Section 7508 (relating to time for performing certain
acts postponed by reason of service in combat zone).
(b) Qualified Hazardous Duty Area.--For purposes of this section,
the term ``qualified hazardous duty area'' means Bosnia and Herzegovina,
Croatia, or Macedonia, if as of the date of the enactment of this
section any member of the Armed Forces of the United States is entitled
to special pay under section 310 of title 37, United States Code
(relating to special pay; duty subject to hostile fire or imminent
danger) for services performed in such country. Such term includes any
such country only during the period such entitlement is in effect.
Solely for purposes of applying section 7508 of the Internal Revenue
Code of 1986, in the case of an individual who is performing services as
part of Operation Joint Endeavor outside the United States while
deployed away from such individual's permanent duty station, the term
[[Page 110 STAT. 828]]
hazardous duty area'' includes, during the period for which such
entitlement is in effect, any area in which such services are performed.
(c) Exclusion of Combat Pay From Withholding Limited to Amount
Excludable From Gross Income.--Paragraph (1) of section 3401(a) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 3401.>> (defining wages)
is amended by inserting before the semicolon the following: ``to the
extent remuneration for such service is excludable from gross income
under such section''.
(d) Increase in Combat Pay Exclusion for Officers to Highest Amount
Applicable to Enlisted Personnel.--
(1) <<NOTE: 26 USC 112.>> In general.--Subsection (b) of
section 112 of such Code (relating to commissioned officers) is
amended by striking ``$500'' and inserting ``the maximum
(2) Maximum enlisted amount.--Subsection (c) of section 112
of such Code (relating to definitions) is amended by adding at
the end the following new paragraph:
``(5) The term `maximum enlisted amount' means, for any
month, the sum of--
``(A) the highest rate of basic pay payable for such
month to any enlisted member of the Armed Forces of the
United States at the highest pay grade applicable to
enlisted members, and
``(B) in the case of an officer entitled to special
pay under section 310 of title 37, United States Code,
for such month, the amount of such special pay payable
to such officer for such month.''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
provisions of and amendments made by this section shall take
effect on November 21, 1995.
(2) Withholding.--Subsection (a)(5) and the amendment made
by subsection (c) shall apply to remuneration paid after the
date of the enactment of this Act.
SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.
Subsection (c) of section 10511 of the Revenue Act of
1987 <<NOTE: 26 USC 7801 note.>> is amended by striking ``October 1,
2000'' and by inserting ``October 1, 2003''.
Approved March 20, 1996.
LEGISLATIVE HISTORY--H.R. 2778:
HOUSE REPORTS: No. 104-465 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 142 (1996):
Mar. 5, considered and passed House.
Mar. 6, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Mar. 20, Presidential statement.