ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME TAX CREDIT.

SEC. 102. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME TAX CREDIT.(a) In General.—Clause (vi) of section 32(c)(2)(B) (defining earned income) is amended to read as follows:“(vi) a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.”.(b) Conforming Amendment.—Paragraph (4) of section 6428(e) is amended by striking “except that—” and all that follows through “(B) such term shall” and inserting “except that such term shall”.(c) Sunset Not Applicable.—Section 105 of the Working Families Tax Relief Act of 2004 (relating to application of EGTRRA sunset to this title) shall not apply to section 104(b) of such Act.(d) Effective Date.—The amendments made by this section shall apply to taxable years ending after December 31, 2007.