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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Coast Guard Combat5 Injured Tax Fairness Act’’. 


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1 SEC. 2. RESTORATION OF AMOUNTS IMPROPERLY WITH2 HELD FOR TAX PURPOSES FROM SEVERANCE 

3 PAYMENTS TO VETERANS OF THE COAST 

4 GUARD WITH COMBAT-RELATED INJURIES. 

5 (a) APPLICATION TO MEMBERS OF THE COAST

6 GUARD WHEN THE COAST GUARD IS NOT OPERATING

7 AS A SERVICE IN THE DEPARTMENT OF THE NAVY.—The 

8 Combat-Injured Veterans Tax Fairness Act of 2016 (Pub9 lic Law 114–292; 10 U.S.C. 1212 note) is amended— 

10 (1) in section 3(a)— 

11 (A) in the matter preceding paragraph (1), 

12 by inserting ‘‘(and the Secretary of Homeland 

13 Security, with respect to the Coast Guard when 

14 it is not operating as a service in the Depart15 ment of the Navy, and the Secretary of Trans16 portation, with respect to the Coast Guard dur17 ing the period in which it was operating as a 

18 service in the Department of Transportation)’’ 

19 after ‘‘the Secretary of Defense’’; and 

20 (B) in paragraph (1)(A)— 

21 (i) in clause (i), by striking ‘‘the Sec22 retary’’ and inserting ‘‘the Secretary of 

23 Defense (or the Secretary of Homeland Se24 curity or the Secretary of Transportation, 

25 with respect to the Coast Guard, as appli26 cable)’’; 


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1 (ii) in clause (ii), by striking ‘‘the Sec2 retary’’ and inserting ‘‘the Secretary of 

3 Defense (or the Secretary of Homeland Se4 curity or the Secretary of Transportation, 

5 with respect to the Coast Guard, as appli6 cable)’’; and 

7 (iii) in clause (iv), by striking ‘‘the 

8 Secretary’’ and inserting ‘‘the Secretary of 

9 Defense (or the Secretary of Homeland Se10 curity or the Secretary of Transportation, 

11 with respect to the Coast Guard, as appli12 cable)’’; 

13 (2) in section 4— 

14 (A) in the section heading, by inserting 

15 ‘‘AND SECRETARY OF HOMELAND SECU16 RITY’’ after ‘‘SECRETARY OF DEFENSE’’; 

17 (B) by inserting ‘‘(and the Secretary of 

18 Homeland Security with respect to the Coast 

19 Guard when it is not operating as a service in 

20 the Department of the Navy)’’ after ‘‘The Sec21 retary of Defense’’; and 

22 (C) by striking ‘‘made by the Secretary’’ 

23 and inserting ‘‘made by the Secretary of De24 fense (or the Secretary of Homeland Security 

25 with respect to the Coast Guard)’’; and 


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1 (3) in section 5— 

2 (A) in subsection (a)— 

3 (i) by inserting ‘‘(and the Secretary of 

4 Homeland Security, with respect to the 

5 Coast Guard when it is not operating as a 

6 service in the Department of the Navy, 

7 and the Secretary of Transportation, with 

8 respect to the Coast Guard during the pe9 riod in which it was operating as a service 

10 in the Department of Transportation)’’ 

11 after ‘‘the Secretary of Defense’’; and 

12 (ii) by striking ‘‘the Secretary to’’ and 

13 inserting ‘‘the Secretary of Defense (or the 

14 Secretary of Homeland Security or the 

15 Secretary of Transportation, with respect 

16 to the Coast Guard, as applicable) to’’; and 

17 (B) in subsection (b)— 

18 (i) in paragraph (2), by striking ‘‘the 

19 Secretary’’ and inserting ‘‘the Secretary of 

20 Defense (or the Secretary of Homeland Se21 curity or the Secretary of Transportation, 

22 with respect to the Coast Guard, as appli23 cable)’’; and 

24 (ii) in paragraph (3), by striking ‘‘the 

25 Secretary’’ and inserting ‘‘the Secretary of 


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1 Defense (or the Secretary of Homeland Se2 curity, with respect to the Coast Guard 

3 when it is not operating as a service in the 

4 Department of the Navy)’’. 

5 (b) DEADLINES.— 

6 (1) IDENTIFICATION OF AMOUNTS IMPROPERLY

7 WITHHELD AND REPORTING.—The Secretary of 

8 Homeland Security and the Secretary of Transpor9 tation shall carry out the requirements under— 

10 (A) section 3(a) of the Combat-Injured 

11 Veterans Tax Fairness Act of 2016 (Public 

12 Law 114–292; 10 U.S.C. 1212 note), as 

13 amended by subsection (a)(1), not later than 

14 one year after the date of the enactment of this 

15 Act; and 

16 (B) section 5 of that Act, as amended by 

17 subsection (a)(3), not later than one year after 

18 the date of the enactment of this Act. 

19 (2) ENSURING AMOUNTS ARE NOT IMPROPERLY

20 WITHHELD.—The Secretary of Homeland Security 

21 shall carry out the requirements under section 4 of 

22 the Combat-Injured Veterans Tax Fairness Act of 

23 2016 (Public Law 114–292; 10 U.S.C. 1212 note), 


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1 as amended by subsection (a)(2), beginning on the 

2 date of the enactment of this Act. 

Æ 


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