Summary: H.R.1664 — 108th Congress (2003-2004)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House without amendment (04/09/2003)

(This measure has not been amended since it was introduced in the House on April 8, 2003. However, because action occurred on the measure, the summary has been expanded.)

Armed Forces Tax Fairness Act of 2003 - (Sec. 2) Amends the Internal Revenue Code to authorize a member of the uniformed services or the Foreign Service on "qualified official extended duty" (any duty in excess of 180 days while serving at a duty station which is at least 150 miles from the principal residence or while residing under Government orders in Government quarters), to extend for five years the five-year period utilized in determining full exclusion of gain from the sale of a principal residence.

Includes among the uniformed services: (1) the armed forces; (2) the commissioned corps of the National Oceanic and Atmospheric Administration; and (3) the commissioned corps of the Public Health Service.

Makes such provisions effective as if included in section 312 of the Taxpayer Relief Act of 1997.

States that if a refund or credit resulting from this section is prevented before the close of the one-year period beginning on the date of the enactment of this Act by the operation of any law or rule of law (including res judicata), such refund or credit may be allowed if claimed before the close of such period.

(Sec. 3) Excludes from gross income as a qualified military benefit the amount of the death gratuity payable under chapter 75 of title 10 of the United States Code, effective with respect to deaths occurring after September 10, 2001.

(Sec. 4) Exempts amounts received under the Homeowners Assistance Program from inclusion as gross income.

(Sec. 5) Extends combat zone filing rules to contingency operations.

(Sec. 6) Includes ancestors or lineal descendants of past or present members of the armed forces or of cadets as qualifying members of veterans' organizations for purposes of such organizations' tax-exempt status determination.

(Sec. 7) Includes dependent care assistance provided under a dependent care assistance program for a member of the uniformed services by reason of such member's status or service as an income-excludable qualified military benefit.

(Sec. 8) Exempts distributions from an education individual retirement account from the ten percent additional tax for non-educational use: (1) if made for an account holder at the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy; and (2) to the extent that the distribution does not exceed the costs of advanced education.

(Sec. 9) Provides a deduction (limited to $1,500) for itemizers and non-itemizers for unreimbursed overnight travel, meals, and lodging expenses of National Guard and Reserve members who must travel more than 100 miles away from home and stay overnight as part of their official duties.

(Sec. 10) Provides tax relief for families of the Columbia Space Shuttle by making the tax relief provisions applicable to terrorist attack victims applicable to the Columbia Space Shuttle.

(Sec. 11) Provides that amounts transferred to any trust fund under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act shall be determined as if this Act had not enacted.