Bill Details

S.878 - 119th Congress

Track Coast Guard Combat-Injured Tax Fairness Act? Stop tracking Coast Guard Combat-Injured Tax Fairness Act?

When you track this bill you will receive emails when the bill has been updated.

You will no longer receive emails when this bill is updated.

Status
  1. Introduced
  2. Passed House
  3. Passed Senate
  4. To President
  5. Law
Latest action
2025-03-06 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-03-06
Policy Area
Armed Forces and National Security
Committees
View committees (1)
6
0

AI Summary This summary was generated by AI from the bill text. AI can get information wrong.

This bill would extend an existing tax fairness law to certain Coast Guard members who were injured in combat. The law is meant to fix cases where money was wrongly taken out of severance payments for taxes, and to help veterans get that money back. Under this bill, the Coast Guard would be covered in the same way as other military services, with the Department of Homeland Security handling the Coast Guard when it is not part of the Navy. The bill also sets deadlines for identifying affected people, stopping future wrongful tax withholding, and reporting on the work.

  • It updates the 2016 combat-injured veterans tax law so it clearly applies to Coast Guard members in the right situations.
  • It allows the Secretary of Homeland Security to carry out the Coast Guard-related duties when the Coast Guard is not operating under the Department of the Navy.
  • It requires the government to identify improperly withheld tax amounts and report on them within one year after the bill becomes law.
  • It says the Department of Homeland Security must begin making sure these taxes are not wrongly withheld right away after enactment.

Official Summaries

No summaries available

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 878 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                 S. 878

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.


_______________________________________________________________________


                   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.

    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 ``Coast Guard Combat-Injured Tax 
Fairness Act''.

SEC. 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.
                                 <all>