S. 878

114 S878 IS: Coast Guard Combat-Injured Tax Fairness Act
 U.S. Senate
 2025-03-06
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 878  IN THE SENATE OF THE UNITED STATES   March 6, 2025   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.
Short title
This Act may be cited as the   Coast Guard Combat-Injured Tax Fairness Act  .
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.