Military Reserve Mobilization Income Security Act of 2005 - Amends the Internal Revenue Code to allow members of the National Guard or the Ready Reserve who have been activated for military duty a refundable income tax credit for the lesser of: (1) the excess of such reservist's daily civilian compensation over the reservist's daily military pay while on active duty or full-time National Guard duty; or (2) $54.80 per day. Includes the amount of such credit in the reservist's gross income.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 417 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 417
To amend the Internal Revenue Code of 1986 to provide for a refundable
wage differential credit for activated military reservists.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 17, 2005
Mr. Dorgan (for himself and Mr. Shelby) 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 provide for a refundable
wage differential credit for activated military reservists.
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 ``Military Reserve Mobilization Income
Security Act of 2005''.
SEC. 2. REFUNDABLE CREDIT FOR ACTIVATED MILITARY RESERVISTS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by redesignating
section 36 as section 37 and by inserting after section 35 the
following new section:
``SEC. 36. WAGE DIFFERENTIAL FOR ACTIVATED RESERVISTS.
``(a) In General.--In the case of a qualified reservist, there
shall be allowed as a credit against the tax imposed by this subtitle
an amount equal to the qualified active duty wage differential of such
qualified reservist for the taxable year.
``(b) Qualified Active Duty Wage Differential.--For purposes of
this section--
``(1) In general.--The term `qualified active duty wage
differential' means the daily wage differential of the
qualified active duty reservist multiplied by the number of
days such qualified reservist participates in qualified reserve
component duty during the taxable year, including time spent in
a travel status.
``(2) Daily wage differential.--The daily wage differential
is an amount equal to the lesser of--
``(A) the excess of--
``(i) the qualified reservist's average
daily qualified compensation, over
``(ii) the qualified reservist's average
daily military pay while participating in
qualified reserve component duty to the
exclusion of the qualified reservist's normal
employment duties, or
``(B) $54.80.
``(3) Average daily qualified compensation.--
``(A) In general.--The term `average daily
qualified compensation' means--
``(i) the qualified compensation of the
qualified reservist for the one-year period
ending on the day before the date the qualified
reservist begins qualified reserve component
duty, divided by
``(ii) 365.
``(B) Qualified compensation.--The term `qualified
compensation' means--
``(i) compensation which is normally
contingent on the qualified reservist's
presence for work and which would be includible
in gross income, and
``(ii) compensation which is not
characterized by the qualified reservist's
employer as vacation or holiday pay, or as sick
leave or pay, or as any other form of pay for a
nonspecific leave of absence.
``(4) Average daily military pay and allowances.--
``(A) In general.--The term `average daily military
pay and allowances' means--
``(i) the amount paid to the qualified
reservist during the taxable year as military
pay and allowances on account of the qualified
reservist's participation in qualified reserve
component duty, determined as of the date the
qualified reservist begins qualified reserve
component duty, divided by
``(ii) the total number of days the
qualified reservist participates in qualified
reserve component duty during the taxable year,
including time spent in travel status.
``(B) Military pay and allowances.--The term
`military pay' means pay as that term is defined in
section 101(21) of title 37, United States Code, and
the term `allowances' means the allowances payable to a
member of the Armed Forces of the United States under
chapter 7 of that title.
``(5) Qualified reserve component duty.--The term
`qualified reserve component duty' means--
``(A) active duty performed, as designated in the
reservist's military orders, in support of a
contingency operation as defined in section 101(a)(13)
of title 10, United States Code, or
``(B) full-time National Guard duty (as defined in
section 101(19) of title 32, United States Code) which
is ordered pursuant to a request by the President, for
a period under 1 or more orders described in
subparagraph (A) or (B) of more than 90 consecutive
days.
``(c) Qualified Reservist.--For purposes of this section--
``(1) In general.--The term `qualified reservist' means an
individual who is engaged in normal employment and is a member
of--
``(A) the National Guard (as defined by section
101(c)(1) of title 10, United States Code), or
``(B) the Ready Reserve (as defined by section
10142 of title 10, United States Code).
``(2) Normal employment.--The term `normal employment
duties' includes self-employment.
``(d) Disallowance With Respect to Persons Ordered to Active Duty
for Training.--No credit shall be allowed under subsection (a) to a
qualified reservist who is called or ordered to active duty for any of
the following types of duty:
``(1) Active duty for training under any provision of title
10, United States Code.
``(2) Training at encampments, maneuvers, outdoor target
practice, or other exercises under chapter 5 of title 32,
United States Code.
``(3) Full-time National Guard duty, as defined in section
101(d)(5) of title 10, United States Code.
``(e) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed the taxpayer under this section.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(2) The table of sections for subpart C of part IV of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking the last item and inserting the following new items:
``Sec. 36. Wage differential for activated reservists.
``Sec. 37. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S1631)
Read twice and referred to the Committee on Finance.
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