; (2) in clause (ii), by striking the period at the end and inserting ; or ; and (3) by adding at the end the following: (iii) serving, on a full-time basis, in a national service program authorized under a national service law (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )) or as a Peace Corps volunteer. . 5. Exclusion from gross income of certain payments for national service (a) In general Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Certain payments for national service In the case of an individual, gross income shall not include any amount received under a national service educational award under subtitle D of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12601 et seq. ) or any living allowance provided to such individual during participation in a national service program authorized under a national service law (as defined in section 101 of the National and Community Service Act of 1990 ( 42 U.S.C. 12511 )). . (b) Clerical amendment The table of sections for part II of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Certain payments for national service. . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.