Military Personnel Recruitment and Retention Enhancement Act of 2001

Military Personnel Recruitment and Retention Enhancement Act of 2001 - Amends the Internal Revenue Code to exclude from the gross income of members of the Armed Forces any "qualified bonus." Defines the term "qualified bonus" to mean an enlistment, accession, reenlistment, retention, or other bonus paid to a member of the Armed Forces of the United States in exchange for the agreement of the member to accept a commission as an officer, extend an active service commitment as an officer, enlist, reenlist, or extend an enlistment as an enlisted member in an active or reserve component, or enter into a reserve affiliation agreement.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1466 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1466

To amend the Internal Revenue Code of 1986 to exclude from gross income 
 any enlistment, accession, reenlistment, or retention bonus paid to a 
                      member of the Armed Forces.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2001

  Mr. Hostettler (for himself, Mr. Ryun of Kansas, Ms. McKinney, Mr. 
 Schaffer, Mr. Bartlett of Maryland, Mr. Pitts, Mr. Chabot, Mr. Pence, 
   Mr. Souder, Mr. Jones of North Carolina, Mr. Goode, Mr. Cox, Mr. 
Doolittle, Mr. Green of Wisconsin, Mr. Smith of Michigan, Mr. Gibbons, 
Mr. Cantor, Mr. Schrock, Mr. Smith of New Jersey, Mr. Istook, Mr. Paul, 
  Mr. Sessions, Mrs. Jo Ann Davis of Virginia, Mrs. Tauscher, and Mr. 
    Issa) 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 exclude from gross income 
 any enlistment, accession, reenlistment, or retention bonus paid to a 
                      member of the Armed Forces.

    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 Personnel Recruitment and 
Retention Enhancement Act of 2001''.

SEC. 2. EXCLUSION FROM GROSS INCOME OF ENLISTMENT AND REENLISTMENT 
              BONUSES FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--Section 112 of the Internal Revenue Code of 1986 
(relating to certain combat zone compensation of members of the Armed 
Forces) is amended by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively, and by inserting after 
subsection (b) the following new subsection:
    ``(c) Qualified Bonus.--Gross income does not include a qualified 
bonus.''.
    (b) Qualified Bonus Defined.--Subsection (d) of section 112 of such 
Code (relating to definitions), as redesignated by subsection (a), is 
amended by adding at the end the following new paragraph:
            ``(6) Qualified bonus.--
                    ``(A) In general.--The term `qualified bonus' means 
                an enlistment, accession, reenlistment, retention, or 
                other bonus paid by the Secretary concerned to a member 
                of the Armed Forces of the United States in exchange 
                for the agreement of the member to accept a commission 
                as an officer, extend an active service commitment as 
                an officer, enlist, reenlist, or extend an enlistment 
                as an enlisted member in an active or reserve 
                component, or enter into a reserve affiliation 
                agreement.
                    ``(B) Other definitions.--For purposes of 
                subparagraph (A), the terms `active service', `enlisted 
                member', `officer', and `Secretary concerned' have the 
                meanings given to such terms in section 101 of title 
                10, United States Code.''.
    (c) Conforming Amendments.--
            (1) Section 2201 of such Code is amended by striking 
        ``section 112(c)'' both places it appears and inserting 
        ``section 112(d)''.
            (2) The heading for section 112 of such Code is amended by 
        inserting ``AND OTHER'' before ``COMPENSATION''.
            (3) Section 3401(a)(1) of such Code is amended by inserting 
        ``and other'' before ``compensation''.
            (4) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 112 and inserting the following new item:

                              ``Sec. 112. Certain combat zone and other 
                                        compensation of members of the 
                                        Armed Forces.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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