100 STAT. 2512
PUBLIC LAW 99-514—OCT. 22, 1986 (b) EFFECTIVE D A T E. — The amendment
shall apply to yfears beginning after December 31, 1985. SEC. 1167. EXTENSION OF DUE DATE FOR STUDY OF WELFARE BENEFIT PLANS. Section 560(b) of the T a x Reform Act of 1984 is amended by striking o u t " February 1, 1985" and inserting in lieu thereof " the date which is 1 year after the date of the e n a c t m e n t of the Tax Reform Act of 1986". SEC. 1168. EXCLUSION FROM GROSS INCOME OF CERTAIN MILITARY BENEFITS. (a) EXCLUSION F R O M GROSS I N C O M E. — Part III of subchapter B of
chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 134 a s section 135 and by inserting after section 133 the following new section: "SEC. 134. CERTAIN MILITARY BENEFITS. "(a) GENERAL RULE.—Gross income shall not include any qualified military benefit. "(b) QUALIFIED MILITARY B E N E F I T. — For purposes of t h i s section—
"(1) IN GENERAL.—The term 'qualified military benefit' means any allowance or in-kind benefit which— "(A) is received by any m e m b e r or former m e m b e r of the uniformed services of the United States or any dependent of such m e m b e r by reason of such m e m b e r ' s s t a t u s or service p,^j J a s a m e m b e r of such uniformed services, and "(B) w a s excludable from gross income on September 9, 1986, under any provision of law or regulation the r e under which w a s in effect on such date (other than a provision of this title). "(2) N o OTHER BENEFIT TO BE EXCLUDABLE EXCEPT AS PROVIDED BY THIS TITLE.—Notwithstanding any other provision of law, no benefit shall b e t r e a t e d a s a qualified military benefit unless such benefit— "(A) is a benefit described in paragraph (1), or "(B) is excludable from gross income under this title without regard to any provision of law which is not contained in t h i s title and which is not contained in a revenue Act. "(3) LIMITATIONS ON MODIFICATIONS.—
"(A) IN GENERAL.—Except a s provided in subparagraph (B), no modification or adjustment of any qualified military benefit after September 9, 1986, under any provision of law or regulation described in paragraph (1) shall be t a k e n into account. "(B) EXCEPTION FOR CERTAIN ADJUSTMENTS TO CASH BENE-
FITS.—Subparagraph (A) shall not apply to any adjustment to any qualified military benefit payable in cash which— "(i) is pursuant to a provision of law or regulation (as in effect on September 9, 1986), and "(ii) is determined by reference to any fluctuation in cost, price, currency, or other similar index." (b) The table of sections for part III of subchapter B of chapter 1 is amended by striking o u t the item relating to section 134 and inserting in lieu thereof the following new items: "Sec. 134. Certain military benefits. "Sec. 135. Cross references to other Acts."