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Federal Employee Combat Zone Tax Parity Act

12/15/2023, 3:53 PM

Summary of Bill HR 227

Bill 118 HR 227, also known as the Federal Employee Combat Zone Tax Parity Act, is a piece of legislation introduced in the US Congress. The purpose of this bill is to provide tax relief to federal employees who are serving in combat zones.

Currently, federal employees who are deployed to combat zones are eligible for certain tax benefits, such as the exclusion of their combat pay from their taxable income. However, these benefits do not apply to federal employees who are not in combat zones but are still serving in dangerous areas.

The Federal Employee Combat Zone Tax Parity Act seeks to rectify this discrepancy by extending the same tax benefits to federal employees serving in dangerous areas outside of combat zones. This would ensure that all federal employees who are putting their lives at risk in service to their country receive the same tax relief. The bill has garnered bipartisan support in Congress, with lawmakers from both parties recognizing the importance of providing equal tax benefits to all federal employees serving in dangerous areas. If passed, the Federal Employee Combat Zone Tax Parity Act would provide much-needed financial relief to these dedicated public servants.

Congressional Summary of HR 227

Federal Employee Combat Zone Tax Parity Act

This bill excludes from gross income, for income tax purposes, the compensation of a federal employee who served in a combat zone or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone. The bill terminates the exclusion two years after the end of combatant activities in such zone.

Current Status of Bill HR 227

Bill HR 227 is currently in the status of Bill Introduced since January 9, 2023. Bill HR 227 was introduced during Congress 118 and was introduced to the House on January 9, 2023.  Bill HR 227's most recent activity was Referred to the House Committee on Ways and Means. as of January 9, 2023

Bipartisan Support of Bill HR 227

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 227

Primary Policy Focus

Taxation

Potential Impact Areas

- Diplomacy, foreign officials, Americans abroad
- Government employee pay, benefits, personnel management
- Income tax exclusion
- Military operations and strategy

Alternate Title(s) of Bill HR 227

Federal Employee Combat Zone Tax Parity Act
Federal Employee Combat Zone Tax Parity Act
To amend the Internal Revenue Code of 1986 to exclude from gross income certain combat zone compensation of civilian employees of the United States.

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