Section 1 Short title
This Act may be cited as the “Border Security Tax Relief Act of 2013”.
Border Security Tax Relief Act of 2013
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income the administratively uncontrollable overtime of Border Patrol agents.
Sec. 2 Administratively uncontrollable overtime pay of Border Patrol agents
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section:
“139E. Administratively uncontrollable overtime pay of Border Patrol agents
“(a) In general—Gross income does not include compensation received for service as a Border Patrol agent to the extent such compensation represents administratively uncontrollable overtime pay.
“(b) Administratively uncontrollable overtime pay—For purposes of this section, the term administratively uncontrollable overtime pay means premium pay under section 5545(c)(2) of title 5, United States Code.
“(c) Application of section—Subsection (a) shall only apply to compensation received for the taxpayer’s first taxable year beginning after the date of the enactment of this section.”
Not subject to wage withholding— Subsection (a) of section 3401 of such Code is amended by striking “or” at the end of paragraph (22), by striking the period at the end of paragraph (23) and inserting “; and”, and by inserting after paragraph (23) the following new paragraph:
“(24) for any administratively uncontrollable overtime pay (as defined in section 139E(b)), if at the time of such payment it is reasonable to believe that the employee will be able to exclude such payment from income under section 139E(a).”
Election To treat as included in gross income for purposes of earned income tax credit— Subparagraph (B) of section 32(c)(2) of such Code is amended by striking “and” at the end of clause (v), by striking the period at the end of clause (vi) and inserting “, and”, and by adding at the end the following new clause:
“(vii) a taxpayer may elect to treat amounts excluded from gross income by reason of section 139E as earned income.”
Clerical amendment— The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item:
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.