Coast Guard Combat-Injured Tax Fairness Act

I 118TH CONGRESS 1ST SESSION H. R. 3085 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 MAY 5, 2023 Mr. DAVIS of North Carolina (for himself and Mr. BACON) introduced the fol- lowing 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 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’’. 5 VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3085 IH SEC. 2. RESTORATION OF AMOUNTS IMPROPERLY WITH- 1 HELD FOR TAX PURPOSES FROM SEVERANCE 2 PAYMENTS TO VETERANS OF THE COAST 3 GUARD WITH COMBAT-RELATED INJURIES. 4 (a) APPLICATION TO MEMBERS OF THE COAST 5 GUARD WHEN THE COAST GUARD IS NOT OPERATING 6 AS A SERVICE IN THE DEPARTMENT OF THE NAVY.—The 7 Combat-Injured Veterans Tax Fairness Act of 2016 (Pub- 8 lic Law 114–292; 10 U.S.C. 1212 note) is amended— 9 (1) in section 3(a)— 10 (A) in the matter preceding paragraph (1), 11 by inserting ‘‘(and the Secretary of Homeland 12 Security, with respect to the Coast Guard when 13 it is not operating as a service in the Depart- 14 ment of the Navy, and the Secretary of Trans- 15 portation, with respect to the Coast Guard dur- 16 ing the period in which it was operating as a 17 service in the Department of Transportation)’’ 18 after ‘‘the Secretary of Defense’’; and 19 (B) in paragraph (1)(A)— 20 (i) in clause (i), by striking ‘‘the Sec- 21 retary’’ and inserting ‘‘the Secretary of 22 Defense (or the Secretary of Homeland Se- 23 curity or the Secretary of Transportation, 24 with respect to the Coast Guard, as appli- 25 cable)’’; 26 VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3085 IH (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 VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 3085 IH (3) in section 5— 1 (A) in subsection (a)— 2 (i) by inserting ‘‘(and the Secretary of 3 Homeland Security, with respect to the 4 Coast Guard when it is not operating as a 5 service in the Department of the Navy, 6 and the Secretary of Transportation, with 7 respect to the Coast Guard during the pe- 8 riod in which it was operating as a service 9 in the Department of Transportation)’’ 10 after ‘‘the Secretary of Defense’’; and 11 (ii) by striking ‘‘the Secretary to’’ and 12 inserting ‘‘the Secretary of Defense (or the 13 Secretary of Homeland Security or the 14 Secretary of Transportation, with respect 15 to the Coast Guard, as applicable) to’’; and 16 (B) in subsection (b)— 17 (i) in paragraph (2), by striking ‘‘the 18 Secretary’’ and inserting ‘‘the Secretary of 19 Defense (or the Secretary of Homeland Se- 20 curity or the Secretary of Transportation, 21 with respect to the Coast Guard, as appli- 22 cable)’’; and 23 (ii) in paragraph (3), by striking ‘‘the 24 Secretary’’ and inserting ‘‘the Secretary of 25 VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 3085 IH 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 VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 3085 IH as amended by subsection (a)(2), beginning on the 1 date of the enactment of this Act. 2 Æ VerDate Sep 11 2014 22:26 May 16, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3085.IH H3085 pbinns on DSKJLVW7X2PROD with $$_JOB