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119-hr-2973119th CongressWALLET

Coast Guard Combat-Injured Tax Fairness Act

Sponsored By: Representative Davis, Donald G. [D-NC-1]

In Committee

Summary

Extend tax fairness to Coast Guard combat-injured veterans' severance pay. This bill would apply the Combat-Injured Veterans Tax Fairness Act of 2016 to Coast Guard members when the Coast Guard is not operating as a service of the Navy and assign implementation to the appropriate civilian secretaries.

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  • Combat-injured Coast Guard members and their families would regain access to the same severance-pay tax protections and potential refunds already available to other service branches.
  • The Secretary of Homeland Security and the Secretary of Transportation would have 1 year to identify and report amounts that were improperly withheld from past severance payments.
  • The Secretary of Homeland Security would be required to implement the amended withholding rules on enactment so future severance payments are not improperly taxed.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax fix for Coast Guard combat-injury severance

If enacted, this would extend the 2016 tax relief to Coast Guard members with combat-related injuries. DHS would have to stop and fix wrong tax withholding on their severance starting on the date of enactment, when the Coast Guard is not serving in the Navy. DHS and DOT would have one year after enactment to find and report past wrong withholdings and work to restore that money. DOT would handle past periods when the Coast Guard was under Transportation, and DoD would handle cases when the Coast Guard serves as a Navy service.

Sponsors & CoSponsors

Sponsor

Davis, Donald G. [D-NC-1]

NC • D

Cosponsors

  • Rep. Bacon, Don [R-NE-2]

    NE • R

    Sponsored 4/21/2025

  • Rep. Hamadeh, Abraham J. [R-AZ-8]

    AZ • R

    Sponsored 6/27/2025

Roll Call Votes

No roll call votes available for this bill.

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