Bill Summary
The "Coast Guard Combat-Injured Tax Fairness Act" is a bill aimed at amending the Combat-Injured Veterans Tax Fairness Act of 2016. The primary purpose of this legislation is to extend the benefits of the original act to members of the Coast Guard when the service is not operating under the Department of the Navy.
Key provisions include:
1. **Inclusion of Coast Guard**: It specifically allows for the Secretary of Homeland Security and the Secretary of Transportation to be involved in matters concerning Coast Guard members, ensuring that they receive fair treatment regarding tax withholdings from severance payments due to combat-related injuries.
2. **Restoration of Withheld Amounts**: The bill mandates the identification and restoration of amounts that were improperly withheld for tax purposes from the severance pay of eligible Coast Guard veterans.
3. **Timelines for Implementation**: The legislation sets deadlines for the Secretary of Homeland Security and the Secretary of Transportation to identify and report any improper withholdings within one year of enactment, ensuring timely action for affected veterans.
Overall, this bill seeks to rectify tax inequities for Coast Guard veterans who have sustained combat-related injuries, aligning their treatment with that of other armed service members.
Possible Impacts
The "Coast Guard Combat-Injured Tax Fairness Act" can have several significant effects on individuals and communities. Here are three examples:
1. **Restoration of Tax Benefits for Injured Veterans**: The amendment allows Coast Guard members who were improperly taxed on their severance payments due to combat-related injuries to have those amounts restored. This means veterans can receive financial compensation they were previously denied, which can alleviate economic burdens and support their transition to civilian life.
2. **Increased Recognition of Coast Guard as a Military Service**: By explicitly including the Coast Guard in the provisions of the Combat-Injured Veterans Tax Fairness Act, the legislation acknowledges the role of the Coast Guard in combat situations. This recognition can boost morale within the Coast Guard community and promote a sense of equality among all military branches, reinforcing the importance of their service.
3. **Enhanced Support for Families of Combat-Injured Veterans**: The financial restoration and tax fairness can indirectly benefit the families of Coast Guard veterans. Improved financial stability can lead to better living conditions, access to healthcare, and educational opportunities for the children of injured veterans, thus fostering a more supportive environment for these families.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2973 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2973
To amend the Combat-Injured Veterans Tax Fairness Act of 2016 to apply
to members of the Coast Guard when the Coast Guard is not operating as
a service in the Department of the Navy, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2025
Mr. Davis of North Carolina (for himself and Mr. Bacon) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure, and in addition to the Committee on Ways and Means,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To amend the Combat-Injured Veterans Tax Fairness Act of 2016 to apply
to members of the Coast Guard when the Coast Guard is not operating as
a service in the Department of the Navy, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Coast Guard Combat-Injured Tax
Fairness Act''.
SEC. 2. RESTORATION OF AMOUNTS IMPROPERLY WITHHELD FOR TAX PURPOSES
FROM SEVERANCE PAYMENTS TO VETERANS OF THE COAST GUARD
WITH COMBAT-RELATED INJURIES.
(a) Application to Members of the Coast Guard When the Coast Guard
Is Not Operating as a Service in the Department of the Navy.--The
Combat-Injured Veterans Tax Fairness Act of 2016 (Public Law 114-292;
10 U.S.C. 1212 note) is amended--
(1) in section 3(a)--
(A) in the matter preceding paragraph (1), by
inserting ``(and the Secretary of Homeland Security,
with respect to the Coast Guard when it is not
operating as a service in the Department of the Navy,
and the Secretary of Transportation, with respect to
the Coast Guard during the period in which it was
operating as a service in the Department of
Transportation)'' after ``the Secretary of Defense'';
and
(B) in paragraph (1)(A)--
(i) in clause (i), by striking ``the
Secretary'' and inserting ``the Secretary of
Defense (or the Secretary of Homeland Security
or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
(ii) in clause (ii), by striking ``the
Secretary'' and inserting ``the Secretary of
Defense (or the Secretary of Homeland Security
or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
and
(iii) in clause (iv), by striking ``the
Secretary'' and inserting ``the Secretary of
Defense (or the Secretary of Homeland Security
or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
(2) in section 4--
(A) in the section heading, by inserting ``and
secretary of homeland security'' after ``secretary of
defense'';
(B) by inserting ``(and the Secretary of Homeland
Security with respect to the Coast Guard when it is not
operating as a service in the Department of the Navy)''
after ``The Secretary of Defense''; and
(C) by striking ``made by the Secretary'' and
inserting ``made by the Secretary of Defense (or the
Secretary of Homeland Security with respect to the
Coast Guard)''; and
(3) in section 5--
(A) in subsection (a)--
(i) by inserting ``(and the Secretary of
Homeland Security, with respect to the Coast
Guard when it is not operating as a service in
the Department of the Navy, and the Secretary
of Transportation, with respect to the Coast
Guard during the period in which it was
operating as a service in the Department of
Transportation)'' after ``the Secretary of
Defense''; and
(ii) by striking ``the Secretary to'' and
inserting ``the Secretary of Defense (or the
Secretary of Homeland Security or the Secretary
of Transportation, with respect to the Coast
Guard, as applicable) to''; and
(B) in subsection (b)--
(i) in paragraph (2), by striking ``the
Secretary'' and inserting ``the Secretary of
Defense (or the Secretary of Homeland Security
or the Secretary of Transportation, with
respect to the Coast Guard, as applicable)'';
and
(ii) in paragraph (3), by striking ``the
Secretary'' and inserting ``the Secretary of
Defense (or the Secretary of Homeland Security,
with respect to the Coast Guard when it is not
operating as a service in the Department of the
Navy)''.
(b) Deadlines.--
(1) Identification of amounts improperly withheld and
reporting.--The Secretary of Homeland Security and the
Secretary of Transportation shall carry out the requirements
under--
(A) section 3(a) of the Combat-Injured Veterans Tax
Fairness Act of 2016 (Public Law 114-292; 10 U.S.C.
1212 note), as amended by subsection (a)(1), not later
than one year after the date of the enactment of this
Act; and
(B) section 5 of that Act, as amended by subsection
(a)(3), not later than one year after the date of the
enactment of this Act.
(2) Ensuring amounts are not improperly withheld.--The
Secretary of Homeland Security shall carry out the requirements
under section 4 of the Combat-Injured Veterans Tax Fairness Act
of 2016 (Public Law 114-292; 10 U.S.C. 1212 note), as amended
by subsection (a)(2), beginning on the date of the enactment of
this Act.
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