EXTENSION OF EARNED INCOME TAX CREDIT TO MILITARY PERSONNEL STATIONED OUTSIDE THE UNITED STATES.

SEC. 721. EXTENSION OF EARNED INCOME TAX CREDIT TO MILITARY PERSONNEL STATIONED OUTSIDE THE UNITED STATES. (a) In General.—Subsection (c) of section 32 (relating to earned income credit) is amended by adding at the end the following new paragraph: “(4) Treatment of military personnel stationed outside the united states.—For purposes of paragraphs (1)(A)(ii)(I) and (3)(E), the principal place of abode of a member of the Armed Forces of the United States shall be treated as in the United States during any period during which such member is stationed outside the United States while serving on extended active duty (as defined in section 1034(h)(3)) with the Armed Forces of the United States.” (b) Reporting of Military Earned Income.—Subsection (a) of section 6051 (relating to receipts for employees) is amended by striking “and” at the end of paragraph (8), by striking the period at the end of paragraph (9) and by inserting “, and”, and by inserting after paragraph (9) the following new paragraph: “(10) in the case of an employee who is a member of the Armed Forces of the United States, such employee’s earned income as determined for purposes of section 32 (relating to earned income credit).” (c) Advance Payment of Earned Income Credit Based on Military Earned Income.—Paragraph (1) of section 3507(c) (defining earned income advance amount) is amended by adding at the end the following new sentence: “In the case of an employee who is a member of the Armed Forces of the United States, the earned income advance amount shall be determined by taking into account such employee’s earned income as determined for purposes of section 32.” (d) Effective Dates.— (1) Subsection (a).—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1994. (2) Subsections (b) and (c).—The amendments made by subsections (b) and (c) shall apply to remuneration paid after December 31, 1994.