BNA Fairness Act

Bill: 119-hr-715
Sponsor: full_name: Rep. Womack, Steve [R-AR-3]
Introduced: 2025-01-23
Policy area: Taxation
Latest action: action_date: 2025-01-23
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-01-23
action_desc: Introduced in House
text: <p><strong>BNA Fairness Ac</strong>t</p><p>This bill excludes from gross income (for federal income tax purposes) the basic needs allowance received by eligible members of the Armed Forces.</p><p>Under current law, members of the Armed Forces may be eligible to receive the basic needs allowance (additional monthly payment) if (1) they have completed initial training, (2) they have at least one dependent, and (3) their total household income does not exceed 200% of the federal poverty level (based on the location and number of individuals in the household). Further, under current law, certain qualified military benefits may be excluded from gross income. However, the basic needs allowance is not included within the definition of <em>qualified military benefits</em> and must be included in gross income for federal tax purposes.</p><p>Under the bill, the definition of <em>qualified military benefits</em> that may be excluded from gross income is expanded to include the basic needs allowance.</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 715 IN THE HOUSE OF REPRESENTATIVES January 23, 2025 Mr. Womack (for himself, Mr. Moulton , and Mr. Wittman ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to exclude from gross income the basic needs allowance of members of the Armed Forces.

1. Short title This Act may be cited as the BNA Fairness Act . 2. Exclusion from gross income of the basic needs allowance of members of the Armed Forces (a) In general Section 134(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (7) Basic needs allowance The term qualified military benefit includes the basic needs allowance under section 402b of title 37, United States Code (as in effect at the time of the provision of such allowance). . (b) Conforming amendment Section 134(b)(3)(A) of such Code is amended by striking as provided in subparagraphs (B) and (C) and paragraphs (4) and (5) and inserting as otherwise provided in this subsection . (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.