Sponsors (3)
The bill extends tax-refund relief to combat-injured Coast Guard members and clarifies implementation to speed benefit delivery, at the cost of added administrative burden and tight deadlines that could strain agencies if resources aren't provided.
Combat-injured Coast Guard members will be eligible to have tax-withheld severance amounts restored or refunded, increasing their after-tax compensation and providing direct financial relief.
Veterans and eligible service members will receive benefits faster because DHS and DOT are required to complete identification and reporting within one year, accelerating access to refunds and related benefits.
Federal employees and veterans benefit from clearer implementation and accountability because the bill designates which Secretary carries out payments and duties, reducing administrative ambiguity and likely improving timely execution.
Federal employees and veterans could face implementation errors or delays if the one-year deadlines and immediate duties strain agency capacity and resources, harming timely delivery of benefits.
Taxpayers and federal agencies (DHS, DOT) may incur additional administrative costs to process the expanded refund/restore responsibilities, potentially requiring resource reallocation or new spending.
Based on analysis of 2 sections of legislative text.
Clarifies that Coast Guard members are covered by existing tax-refund/restoration rules for combat-related severance payments and names DHS and DOT Secretaries to carry out duties alongside DoD.
Amends the Combat-Injured Veterans Tax Fairness Act to make clear that Coast Guard members (when the Coast Guard is not operating as a Navy service) are eligible for restoration or refund of taxes withheld from severance payments for combat-related injuries. The bill names the Secretaries of Homeland Security and Transportation alongside the Secretary of Defense to carry out identification, reporting, and payment duties, requires certain reports within one year, and requires immediate implementation of the amended payment provision.
Introduced April 21, 2025 by Don Davis · Last progress April 21, 2025