H.R. 2973: Coast Guard Combat-Injured Tax Fairness Act

This bill, known as the Coast Guard Combat-Injured Tax Fairness Act, aims to amend the existing Combat-Injured Veterans Tax Fairness Act of 2016. Its primary focus is to ensure that members of the Coast Guard who sustain combat-related injuries are treated fairly regarding tax withholdings on their severance payments, similarly to how members of other service branches are treated.

Key Provisions

• Inclusion of Coast Guard Members: The bill expands the definition of eligible military personnel under the tax fairness act to explicitly include Coast Guard members, particularly when the Coast Guard is not operating as a service within the Department of the Navy.
• Tax Withholding Restoration: It seeks to address situations where amounts were improperly withheld from severance payments to combat-injured Coast Guard veterans. This is a correction intended to align the treatment of Coast Guard veterans with that of veterans from other military branches.
• Responsible Authorities: The bill designates the Secretaries of Homeland Security and Transportation, in addition to the Secretary of Defense, to be responsible for the administration of these provisions concerning the Coast Guard.
• Reporting and Identification Deadlines: The bill establishes timelines for identifying and reporting improper withholdings of severance payment amounts. The relevant authorities are required to carry out these actions no later than one year following the enactment of the bill.
• Ongoing Compliance: The Secretary of Homeland Security is tasked with ensuring that severance payments are not improperly withheld from Coast Guard personnel, following the expanded guidelines of the amended law.

Overall Impact

The proposed legislation aims to provide greater fairness and financial relief for Coast Guard members who have been injured in combat. It acknowledges their service and seeks to rectify previous discrepancies in tax treatment compared to veterans from other branches of the military.

Relevant Companies

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