Bill Summary
This bill, if passed into legislation, would provide tax benefits to members of the Armed Forces who are currently performing services in Kenya, Mali, Burkina Faso, and Chad. It states that for tax purposes, these locations will be treated in the same manner as a combat zone, which means that members of the Armed Forces would be entitled to certain tax exemptions and benefits. The bill also defines a "qualified hazardous duty area" as these four countries, and states that this designation will only apply while members of the Armed Forces are entitled to special pay for services performed in these locations. The bill will go into effect immediately upon being passed by Congress.
Possible Impacts
1. Tax Benefits for Armed Forces: This legislation would affect members of the Armed Forces performing services in Kenya, Mali, Burkina Faso, and Chad by providing them with the same tax benefits as if they were performing services in a combat zone. This could potentially save them a significant amount of money and provide financial relief for their families while they are serving in these areas.
2. Exclusion of Combat Pay: The legislation would also affect the tax treatment of combat pay for members of the Armed Forces in these areas. Section 112 of the Internal Revenue Code of 1986 would change the exclusion of certain combat pay for members of the Armed Forces, allowing them to exclude their combat pay from their income for tax purposes. This would benefit members of the Armed Forces by decreasing their taxable income and potentially resulting in a lower tax bill.
3. Tax Relief for Families of Deceased Service Members: The legislation would also affect the taxation of income for the families of deceased service members in these areas. Section 692 of the Internal Revenue Code would provide tax relief for families of deceased service members by excluding their income from taxation. This would provide financial relief for families who have lost a loved one serving in these areas.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2157 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2157
To provide that members of the Armed Forces performing services in
Kenya, Mali, Burkina Faso, and Chad shall be entitled to tax benefits
in the same manner as if such services were performed in a combat zone.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 14, 2025
Mr. Panetta (for himself, Mr. Austin Scott of Georgia, Mr. Moore of
Utah, Mr. Kelly of Mississippi, Mr. Hudson, Mr. Carbajal, Mr. Nunn of
Iowa, Mr. McCormick, Mr. Messmer, Mr. Schneider, Mr. Davis of North
Carolina, Mr. Van Orden, Mrs. Kiggans of Virginia, Ms. Houlahan, Mr.
Moulton, and Mr. Mills) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide that members of the Armed Forces performing services in
Kenya, Mali, Burkina Faso, and Chad shall be entitled to tax benefits
in the same manner as if such services were performed in a combat zone.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN
KENYA, MALI, BURKINA FASO, AND CHAD.
(a) In General.--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
wounds, etc.).
(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 Forces).
(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 Kenya, Mali, Burkina
Faso, and Chad, 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 location. Such term includes such location
only during the period such entitlement is in effect.
(c) Effective Date.--The provisions of this Act shall take effect
on the date of the enactment of this Act.
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