Official Summaries

BNA Fairness Act

This bill excludes from gross income (for federal income tax purposes) the basic needs allowance received by eligible members of the Armed Forces.

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 qualified military benefits and must be included in gross income for federal tax purposes.

Under the bill, the definition of qualified military benefits that may be excluded from gross income is expanded to include the basic needs allowance.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 715 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 715

To amend the Internal Revenue Code of 1986 to exclude from gross income 
       the basic needs allowance of members of the Armed Forces.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``BNA Fairness Act''.

SEC. 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.
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