What This Bill Does
This bill extends tax benefits to Coast Guard members with combat-related injuries. The bill amends an existing law called the Combat-Injured Veterans Tax Fairness Act of 2016 to include Coast Guard personnel when the Coast Guard is not operating under the Department of the Navy.
Who It Affects
Coast Guard members with combat-related injuries who received severance (pay given when leaving service) payments with taxes improperly withheld.
Key Provisions
• The Secretary of Homeland Security gains responsibility for administering tax fairness requirements for Coast Guard members when the Coast Guard is not operating as a service in the Department of the Navy. (Sec. 2(a))
• The Secretary of Transportation gains responsibility for administering tax fairness requirements for Coast Guard members during periods when the Coast Guard operated as a service in the Department of Transportation. (Sec. 2(a))
• The Secretary of Homeland Security and Secretary of Transportation must identify amounts improperly withheld from Coast Guard members and issue reports within one year of this law's enactment. (Sec. 2(b)(1))
• The Secretary of Homeland Security must begin preventing improper tax withholding from Coast Guard severance payments starting immediately upon this law's enactment. (Sec. 2(b)(2))
What Changes
If this law passes, Coast Guard members with combat-related injuries will receive the same tax relief benefits that the 2016 law already provides to other military service members. The government agencies responsible for the Coast Guard will now handle the identification and restoration of improperly withheld taxes.
Important Definitions
None defined in the bill text.
II
118TH CONGRESS
1ST SESSION
S. 725
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 SENATE OF THE UNITED STATES
MARCH 8, 2023
Mr. CASSIDY (for himself and Mr. WARNOCK) introduced the following bill;
which was read twice and referred to the Committee on Finance
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 Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Coast Guard Combat-
4
Injured Tax Fairness Act’’.
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•S 725 IS
SEC. 2. RESTORATION OF AMOUNTS IMPROPERLY WITH-
1
HELD FOR TAX PURPOSES FROM SEVERANCE
2
PAYMENTS TO VETERANS OF THE COAST
3
GUARD WITH COMBAT-RELATED INJURIES.
4
(a) APPLICATION
TO MEMBERS
OF
THE COAST
5
GUARD WHEN THE COAST GUARD IS NOT OPERATING
6
AS A SERVICE IN THE DEPARTMENT OF THE NAVY.—The
7
Combat-Injured Veterans Tax Fairness Act of 2016 (Pub-
8
lic Law 114–292; 10 U.S.C. 1212 note) is amended—
9
(1) in section 3(a)—
10
(A) in the matter preceding paragraph (1),
11
by inserting ‘‘(and the Secretary of Homeland
12
Security, with respect to the Coast Guard when
13
it is not operating as a service in the Depart-
14
ment of the Navy, and the Secretary of Trans-
15
portation, with respect to the Coast Guard dur-
16
ing the period in which it was operating as a
17
service in the Department of Transportation)’’
18
after ‘‘the Secretary of Defense’’; and
19
(B) in paragraph (1)(A)—
20
(i) in clause (i), by striking ‘‘the Sec-
21
retary’’ and inserting ‘‘the Secretary of
22
Defense (or the Secretary of Homeland Se-
23
curity or the Secretary of Transportation,
24
with respect to the Coast Guard, as appli-
25
cable)’’;
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•S 725 IS
(ii) in clause (ii), by striking ‘‘the Sec-
1
retary’’ and inserting ‘‘the Secretary of
2
Defense (or the Secretary of Homeland Se-
3
curity or the Secretary of Transportation,
4
with respect to the Coast Guard, as appli-
5
cable)’’; and
6
(iii) in clause (iv), by striking ‘‘the
7
Secretary’’ and inserting ‘‘the Secretary of
8
Defense (or the Secretary of Homeland Se-
9
curity or the Secretary of Transportation,
10
with respect to the Coast Guard, as appli-
11
cable)’’;
12
(2) in section 4—
13
(A) in the section heading, by inserting
14
‘‘AND
SECRETARY
OF
HOMELAND
SECU-
15
RITY’’ after ‘‘SECRETARY OF DEFENSE’’;
16
(B) by inserting ‘‘(and the Secretary of
17
Homeland Security with respect to the Coast
18
Guard when it is not operating as a service in
19
the Department of the Navy)’’ after ‘‘The Sec-
20
retary of Defense’’; and
21
(C) by striking ‘‘made by the Secretary’’
22
and inserting ‘‘made by the Secretary of De-
23
fense (or the Secretary of Homeland Security
24
with respect to the Coast Guard)’’; and
25
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•S 725 IS
(3) in section 5—
1
(A) in subsection (a)—
2
(i) by inserting ‘‘(and the Secretary of
3
Homeland Security, with respect to the
4
Coast Guard when it is not operating as a
5
service in the Department of the Navy,
6
and the Secretary of Transportation, with
7
respect to the Coast Guard during the pe-
8
riod in which it was operating as a service
9
in the Department of Transportation)’’
10
after ‘‘the Secretary of Defense’’; and
11
(ii) by striking ‘‘the Secretary to’’ and
12
inserting ‘‘the Secretary of Defense (or the
13
Secretary of Homeland Security or the
14
Secretary of Transportation, with respect
15
to the Coast Guard, as applicable) to’’; and
16
(B) in subsection (b)—
17
(i) in paragraph (2), by striking ‘‘the
18
Secretary’’ and inserting ‘‘the Secretary of
19
Defense (or the Secretary of Homeland Se-
20
curity or the Secretary of Transportation,
21
with respect to the Coast Guard, as appli-
22
cable)’’; and
23
(ii) in paragraph (3), by striking ‘‘the
24
Secretary’’ and inserting ‘‘the Secretary of
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•S 725 IS
Defense (or the Secretary of Homeland Se-
1
curity, with respect to the Coast Guard
2
when it is not operating as a service in the
3
Department of the Navy)’’.
4
(b) DEADLINES.—
5
(1) IDENTIFICATION OF AMOUNTS IMPROPERLY
6
WITHHELD
AND
REPORTING.—The Secretary of
7
Homeland Security and the Secretary of Transpor-
8
tation shall carry out the requirements under—
9
(A) section 3(a) of the Combat-Injured
10
Veterans Tax Fairness Act of 2016 (Public
11
Law 114–292; 10 U.S.C. 1212 note), as
12
amended by subsection (a)(1), not later than
13
one year after the date of the enactment of this
14
Act; and
15
(B) section 5 of that Act, as amended by
16
subsection (a)(3), not later than one year after
17
the date of the enactment of this Act.
18
(2) ENSURING AMOUNTS ARE NOT IMPROPERLY
19
WITHHELD.—The Secretary of Homeland Security
20
shall carry out the requirements under section 4 of
21
the Combat-Injured Veterans Tax Fairness Act of
22
2016 (Public Law 114–292; 10 U.S.C. 1212 note),
23
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•S 725 IS
as amended by subsection (a)(2), beginning on the
1
date of the enactment of this Act.
2
Æ
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