Coast Guard Combat-Injured Tax Fairness Act

Subjects: Armed Forces and National Security, Coast guard, Income tax exclusion, Tax reform and tax simplification, Veterans' pensions and compensation


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 725 Introduced in Senate (IS)]

&lt;DOC&gt;






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 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.
                                 &lt;all&gt;
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