The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, March 9, 1996                TAG: 9603090436
SECTION: FRONT                    PAGE: A6   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Short :   38 lines

FOR U.S. TROOPS IN BOSNIA, TAX RELIEF IS ON THE WAY

Legislation extending $83 million in tax relief to U.S. troops serving in the former Yugoslavia is headed for President Clinton's expected signature.

The bill was approved 416-0 by the House on Tuesday and by unanimous consent Wednesday in the Senate. It provides the same tax benefits usually given service members during wartime.

``This relief is essential to ensure that the Internal Revenue Service does not make life more difficult for our soldiers than the rigors of their Bosnian duty has already,'' Senate Majority Leader Bob Dole said in a statement after passage.

``Our troops have more important things to focus on than compiling records, meeting paperwork deadlines or computing their tax liability. And they should receive tax relief,'' he said.

Some House Republicans said the bill would not be needed if Clinton would declare the area a combat zone. About 18,400 U.S. service members are in Bosnia, 2,000 in neighboring Croatia and 500 in Macedonia.

The bill would exclude from federal income tax all earnings by enlisted personnel and warrant officers for any month they are in those countries during NATO's Operation Joint Endeavor peace mission and the United Nations' Operation Able Sentry.

For officers, the excluded earnings would be capped at an amount equal to the highest enlisted pay grade plus officers' hostile fire-imminent danger pay.

KEYWORDS: INCOME TAX MILITARY by CNB