Reservists Tax Relief Act of 2000

Reservists Tax Relief Act of 2000 - Amends the Internal Revenue Code to allow the deduction, as a trade or business expense, of certain expenses of members of a reserve component of the U.S. Armed Forces incurred while away from home in connection with such service.

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3101 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3101

 To amend the Internal Revenue Code of 1986 to allow as a deduction in 
    determining adjusted gross income the deduction for expenses in 
  connection with services as a member of a reserve component of the 
                   Armed Forces of the United States.


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                   IN THE SENATE OF THE UNITED STATES

           September 25 (legislative day, September 22), 2000

 Mr. Ashcroft (for himself and Mr. Sessions) 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 allow as a deduction in 
    determining adjusted gross income the deduction for expenses in 
  connection with services as a member of a reserve component of the 
                   Armed Forces 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 ``Reservists Tax Relief Act of 2000''.

SEC. 2. DEDUCTION OF CERTAIN EXPENSES OF RESERVISTS.

    (a) Deduction Allowed.--Section 162 of the Internal Revenue Code of 
1986 (relating to certain trade or business expenses) is amended by 
redesignating subsection (p) as subsection (q) and inserting after 
subsection (o) the following new subsection:
    ``(p) Treatment of Expenses of Members of Reserve Component of 
Armed Forces of the United States.--For purposes of subsection (a), in 
the case of an individual who performs services as a member of a 
reserve component of the Armed Forces of the United States at any time 
during the taxable year, such individual shall be deemed to be away 
from home in the pursuit of a trade or business during any period for 
which such individual is away from home in connection with such 
service.''.
    (b) Deduction Allowed Whether or Not Taxpayer Elects To Itemize.--
Section 62(a)(2) of the Internal Revenue Code of 1986 (relating to 
certain trade and business deductions of employees) is amended by 
adding at the end the following new subparagraph:
                    ``(D) Certain expenses of members of reserve 
                components of the armed forces of the united states.--
                The deductions allowed by section 162 which consist of 
                expenses paid or incurred by the taxpayer in connection 
                with the performance of services by such taxpayer as a 
                member of a reserve component of the Armed Forces of 
                the United States.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2000.
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