
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC134]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
         PART III--ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
 
Sec. 134. Certain military benefits


(a) General rule

    Gross income shall not include any qualified military benefit.

(b) Qualified military benefit

    For purposes of this section--

                           (1) In general

        The term ``qualified military benefit'' means any allowance or 
    in-kind benefit (other than personal use of a vehicle) which--
            (A) is received by any member or former member of the 
        uniformed services of the United States or any dependent of such 
        member by reason of such member's status or service as a member 
        of such uniformed services, and
            (B) was excludable from gross income on September 9, 1986, 
        under any provision of law, regulation, or administrative 
        practice which was in effect on such date (other than a 
        provision of this title).

    (2) No other benefit to be excludable except as provided by 
                                 this title

        Notwithstanding any other provision of law, no benefit shall be 
    treated as 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 this 
        title and which is not contained in a revenue Act.

                  (3) Limitations on modifications

        (A) In general

            Except as provided in subparagraph (B), no modification or 
        adjustment of any qualified military benefit after September 9, 
        1986, shall be taken into account.

        (B) Exception for certain adjustments to cash benefits

            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.

(Added Pub. L. 99-514, title XI, Sec. 1168(a), Oct. 22, 1986, 100 Stat. 
2512; amended Pub. L. 100-647, title I, Sec. 1011B(f)(1), (2)(A), (3), 
Nov. 10, 1988, 102 Stat. 3489, 3490.)


                            Prior Provisions

    A prior section 134 was renumbered section 139 of this title.


                               Amendments

    1988--Subsec. (b)(1). Pub. L. 100-647, Sec. 1011B(f)(2)(A), inserted 
``(other than personal use of a vehicle)'' after ``in-kind benefit'' in 
introductory text.
    Subsec. (b)(1)(B). Pub. L. 100-647, Sec. 1011B(f)(1), substituted 
``, regulation, or administrative practice'' for ``or regulation 
thereunder''.
    Subsec. (b)(3)(A). Pub. L. 100-647, Sec. 1011B(f)(3), struck out 
``under any provision of law or regulation described in paragraph (1)'' 
after ``September 9, 1986,''.


                    Effective Date of 1988 Amendment

    Section 1011B(f)(2)(B) of Pub. L. 100-647 provided that: ``The 
amendment made by subparagraph (A) [amending this section] shall apply 
to taxable years beginning after December 31, 1986.''
    Amendment by section 1011B(f)(1), (3) of Pub. L. 100-647 effective, 
except as otherwise provided, as if included in the provision of the Tax 
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see 
section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of 
this title.


                             Effective Date

    Section 1168(c) of Pub. L. 99-514, as amended by Pub. L. 100-647, 
title I, Sec. 1011B(f)(4), Nov. 10, 1988, 102 Stat. 3490, provided that: 
``The amendments made by this section [enacting this section] shall 
apply to taxable years beginning after December 31, 1984.''
