To amend the Internal Revenue Code of 1986 to make permanent law the treatment of tax-exempt combat pay as earned income for purposes of the earned income credit.

Amends the Internal Revenue Code to make permanent the taxpayer election to treat combat zone compensation as earned income for purposes of calculating earned income tax credit amounts.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3529 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3529

 To amend the Internal Revenue Code of 1986 to make permanent law the 
treatment of tax-exempt combat pay as earned income for purposes of the 
                         earned income credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2007

 Mrs. Boyda of Kansas (for herself, Mr. Barrow, Mr. Lampson, Ms. Shea-
   Porter, and Mr. Patrick J. Murphy of Pennsylvania) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to make permanent law the 
treatment of tax-exempt combat pay as earned income for purposes of the 
                         earned income credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PERMANENT EXTENSION OF SPECIAL RULE TREATING COMBAT PAY AS 
              EARNED INCOME FOR EARNED INCOME CREDIT.

    (a) In General.--Clause (vi) of section 32(c)(2)(B) of the Internal 
Revenue Code of 1986 (relating to earned income) is amended to read as 
follows:
                            ``(vi) a taxpayer may elect to treat 
                        amounts excluded from gross income by reason of 
                        section 112 as earned income.''.
    (b) Provision Not Subject to Sunset.--Section 105 of the Working 
Families Tax Relief Act of 2004 (relating to application of EGTRRA 
sunset to this title) shall not apply to section 104(b) of such Act.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after December 31, 2007.
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