H.R. 715: BNA Fairness Act

This bill, known as the **BNA Fairness Act**, proposes an amendment to the Internal Revenue Code of 1986 that aims to exclude a specific type of financial support from the taxable income of members of the Armed Forces. The key components of the bill are as follows:

Purpose of the Bill

The main goal of the BNA Fairness Act is to ensure that the **basic needs allowance**, which is a type of financial assistance provided to eligible military personnel, is not considered taxable income. This change is intended to provide financial relief to service members by reducing their overall tax burden.

Definition of Basic Needs Allowance

The **basic needs allowance** is defined within the legislation as a qualified military benefit that falls under section 402b of title 37 of the United States Code. This allowance is designed to help military members meet their basic living expenses.

Amendments to the Code

• The amendment specifies that the basic needs allowance will be included in the definition of a "qualified military benefit."
• It also makes conforming changes to ensure that references within the Internal Revenue Code accurately reflect this new exclusion.

Effective Date

The provisions outlined in this bill will take effect for taxable years ending after the bill is enacted. This means that eligible members of the Armed Forces would begin to see the benefits of this tax exclusion in their future tax filings.

Impact

By not counting the basic needs allowance as gross income, the bill aims to lessen the financial strain on military members, helping them retain more of their financial assistance for personal use. This could be particularly beneficial for service members and their families, as it would mean more money available for essential expenses.

Relevant Companies

None found.