To extend the tax benefits available with respect to services performed in a combat zone to services performed in the Federal Republic of Yugoslavia (Serbia/Montenegro) and certain other areas, and for other purposes.

Extends the tax benefits available under the Internal Revenue Code for services performed in a combat zone to members of the armed forces for services performed in the Federal Republic of Yugoslavia (Serbia-Montenegro), Albania, the Adriatic Sea, and the northern Ionian Sea (above the 39th parallel).

[106th Congress Public Law 21]
[From the U.S. Government Publishing Office]


<DOC>
[DOCID: f:publ021.106]


[[Page 113 STAT. 34]]

Public Law 106-21
106th Congress

                                 An Act


 
To extend the tax benefits available with respect to services performed 
   in a combat zone to services performed in the Federal Republic of 
                       Yugoslavia (Serbia/Monte- 
negro) and certain other areas, and for other purposes. <<NOTE: Apr. 19, 
                         1999 -  [H.R. 1376]>> 

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

SECTION 1. <<NOTE: 26 USC 112 note.>> AVAILABILITY OF CERTAIN TAX 
            BENEFITS FOR SERVICES AS PART OF OPERATION ALLIED FORCE.

    (a) General Rule.--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 any area of the Federal 
Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic Sea, 
and the northern Ionian Sea (above the 39th parallel) during the period 
(which includes the date of the enactment of this Act) that 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 area.
    (c) Special Rule for Section 7508.--Solely for purposes of applying 
section 7508 of the Internal Revenue Code of 1986, in the case of an 
individual who is performing services as part of Operation Allied Force 
outside the United States while deployed

[[Page 113 STAT. 35]]

away from such individual's permanent duty station, the term ``qualified 
hazardous duty area'' includes, during the period for which the 
entitlement referred to in subsection (b) is in effect, any area in 
which such services are performed.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on March 24, 1999.
            (2) Withholding.--Subsection (a)(5) shall apply to 
        remuneration paid after the date of the enactment of this Act.

    Approved April 19, 1999.

LEGISLATIVE HISTORY--H.R. 1376 (S. 767):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 106-90 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 145 (1999):
            Apr. 15, considered and passed House and Senate.

                                  <all>