Tax-free

base closure assistance. Exempts from taxation assistance that members

of the Armed Forces receive under the Homeowners' Assistance Program when

military bases are closed.

Extends

combat zone filing. Current law provides certain tax deadline extensions

for military personnel while serving in a combat zone. These extensions

ensure that service personnel are not penalized if they are serving overseas

when April 15, Tax Day, rolls around. This provision of the bill expands

the definition of combat zones so those serving in "contingency operations,"

such as those in the Middle East, enjoy the same extension.

Above-the-line

deduction for overnight travel expenses of military reservists. The

bill provides an above-the-line deduction of up to $500 of non-reimbursable

travel expenses incurred by military reservists who serve more than 100

miles away from home and stay overnight.

The bill will

now be sent to the Senate for consideration.