Coast Guard Combat-Injured Tax Fairness Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

Senate BillS 878Armed Forces and National Security

Coast Guard Combat-Injured Tax Fairness Act

INTRO MAR 6· LAST ACTION MAR 6

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WHAT THE BILL DOES

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Voters should care about this bill because it ensures fairness and equal treatment for all service members injured in combat, regardless of which branch they served in. Before this bill, Coast Guard members might not have been fully covered by the 2016 law, potentially leading to financial hardship if their combat-injury severance pay was improperly taxed. If this bill becomes law, it will correct past errors by returning improperly withheld taxes to affected Coast Guard veterans and prevent such errors from happening again in the future. If it doesn't pass, some combat-injured Coast Guard members might continue to face incorrect tax burdens or not receive the refunds they are due.

KEY PROVISIONS

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PROVISION 01

Extends the Combat-Injured Veterans Tax Fairness Act of 2016 to cover members of the Coast Guard, even when the Coast Guard is not operating under the Department of the Navy.

This ensures that Coast Guard members receive the same tax protections for combat-related severance pay as members of other military branches.

PROVISION 02

Requires the Secretary of Homeland Security and the Secretary of Transportation to identify and report past instances where tax amounts were improperly withheld from combat-injured Coast Guard members' severance pay.

This provision is crucial for finding past errors and starting the process of returning money to affected veterans.

PROVISION 03

Mandates that the Secretary of Homeland Security ensure that future severance payments to combat-injured Coast Guard members are not improperly taxed.

This prevents future financial burdens and ensures ongoing fairness for Coast Guard members receiving combat-related severance.

PROVISION 04

Sets a deadline of one year from the bill's enactment for the Secretaries to identify and report past improper withholdings and to notify affected veterans.

This establishes a clear timeline for implementing the corrective actions and provides accountability.

SPONSORSHIP

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ACTION TIMELINE

2 EVENTS

MAR 6

Introduced in Senate

INTROREFERRAL

MAR 6

Read twice and referred to the Committee on Finance.

INTROREFERRAL

BILL INFO

TypeSenate Bill

NumberS 878

Congress119th

StatusIn Committee

IntroducedMar 6, 2025

Last actionMar 6, 2025

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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAR 6, 2025

Senate BillS 878Armed Forces and National Security

Coast Guard Combat-Injured Tax Fairness Act

INTRODUCED MAR 6, 2025· LAST ACTION MAR 6, 2025

PASSAGE CHANCES

—%

READING

4 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Extends the Combat-Injured Veterans Tax Fairness Act of 2016 to cover members of the Coast Guard, even when the Coast Guard is not operating under the Department of the Navy.

This ensures that Coast Guard members receive the same tax protections for combat-related severance pay as members of other military branches.

high

This provision is crucial for finding past errors and starting the process of returning money to affected veterans.

high

Mandates that the Secretary of Homeland Security ensure that future severance payments to combat-injured Coast Guard members are not improperly taxed.

This prevents future financial burdens and ensures ongoing fairness for Coast Guard members receiving combat-related severance.

med

Sets a deadline of one year from the bill's enactment for the Secretaries to identify and report past improper withholdings and to notify affected veterans.

This establishes a clear timeline for implementing the corrective actions and provides accountability.

DEADLINES & DATES

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An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Not later than one year after the date of the enactment of this Act

Secretary of Homeland Security and Secretary of Transportation must identify amounts improperly withheld and report on them.

Beginning on the date of the enactment of this Act

Secretary of Homeland Security must carry out requirements to ensure amounts are not improperly withheld in the future.

GLOSSARY

AI-written

Combat-Injured Veterans Tax Fairness Act of 2016: A law passed in 2016 that required the Department of Defense to identify and return taxes improperly withheld from severance payments for veterans with combat-related injuries.
Severance Pay: A payment made to an employee or service member when their employment or service is ended, often under specific circumstances like a combat-related injury.
Withholding: The practice of an employer or payer deducting taxes from an employee's wages or a recipient's payment before distributing the money.
Department of Homeland Security (DHS): A U.S. government department responsible for public security, including the U.S. Coast Guard during peacetime.
Department of Transportation (DOT): A U.S. government department that previously oversaw the U.S. Coast Guard prior to its transfer to the Department of Homeland Security in 2003.

ACTION TIMELINE

2 EVENTS

MAR 6, 25

Introduced in Senate

INTROREFERRAL

MAR 6, 25

Read twice and referred to the Committee on Finance.

INTROREFERRAL

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Finance CommitteeReferred

Mar 6, 2025

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Coast Guard Combat-Injured Tax Fairness Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

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Coast Guard Combat-Injured Tax Fairness Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

GLOSSARY

ACTION TIMELINE

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