SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Disabled Veterans Tax 
Termination Act’’. 
SEC. 2. CONCURRENT RECEIPT OF BOTH RETIRED PAY AND 
VETERANS’ DISABILITY COMPENSATION FOR 
MILITARY RETIREES WITH COMPENSABLE 
SERVICE-CONNECTED DISABILITIES. 
(a) INCLUSION OF RETIREES WITH SERVICE-CON-
NECTED DISABILITIES RATED LESS THAN 50 PER-
CENT.—Section 1414(a) of title 10, United States Code, 
is amended— 
(1) by striking ‘‘COMPENSATION’’ in the sub-
section heading and all that follows through ‘‘Sub-
ject’’ and inserting ‘‘COMPENSATION.—Subject’’; 
(2) by striking ‘‘qualifying service-connected 
disability’’ and inserting ‘‘service-connected dis-
ability’’; and 
(3) by striking paragraph (2). 
(b) INCLUSION
OF DISABILITY RETIREES WITH 
LESS THAN 20 YEARS OF SERVICE.—Section 1414(b) of 
title 10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘member re-
tired’’ and inserting ‘‘qualified retiree who is re-
tired’’; and 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
VerDate Sep 11 2014 
22:14 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H333.IH
H333
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20 
YEARS OF SERVICE.—The retired pay of a qualified 
retiree who is retired under chapter 61 of this title 
with fewer than 20 years of creditable service is sub-
ject to reduction under sections 5304 and 5305 of 
title 38, but only by the amount (if any) by which 
the amount of the member’s retired pay under such 
chapter exceeds the amount equal to 21⁄2 percent of 
the member’s years of creditable service multiplied 
by the member’s retired pay base under section 
1406(b)(1) or 1407 of this title, whichever is appli-
cable to the member.’’. 
(c) CONFORMING AMENDMENTS REFLECTING END 
OF CONCURRENT RECEIPT PHASE-IN PERIOD.—Section 
1414 of title 10, United States Code, is further amend-
ed— 
(1) in subsection (a), as amended by subsection 
(a) of this section, by striking the final sentence; 
(2) by striking subsection (c) and redesignating 
subsections (d) and (e) as subsections (c) and (d), 
respectively; and 
(3) in subsection (d), as so redesignated, by 
striking paragraphs (3) and (4). 
(d) CLERICAL AMENDMENTS.— 
VerDate Sep 11 2014 
22:14 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H333.IH
H333
ssavage on LAPJG3WLY3PROD with BILLS
(1) SECTION HEADING.—The heading for sec-
tion 1414 of title 10, United States Code, is amend-
ed to read as follows: 
‘‘§ 1414. Members eligible for retired pay who are also 
eligible for veterans’ disability compensa-
tion: concurrent payment of retired pay 
and disability compensation’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 71 of title 10, United States Code, is 
amended to read as follows: 
‘‘1414. Members eligible for retired pay who are also eligible for veterans’ dis-
ability compensation: concurrent payment of retired pay and 
disability compensation.’’. 
(e) CONFORMING AMENDMENT REFLECTING SUB-
SECTION REDESIGNATION.—Section 1413a(f) of title 10, 
United States Code, is amended by striking ‘‘Subsection 
(d)’’ and inserting ‘‘Subsection (c)’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month beginning after the date of the enactment of this 
Act and shall apply to payments for months beginning on 
or after that date. 
Æ 
VerDate Sep 11 2014 
22:14 Feb 04, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H333.IH
H333
ssavage on LAPJG3WLY3PROD with BILLS