II
119THCONGRESS
1
STSESSION 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
MARCH6, 2025
Mr. C
ASSIDY(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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Coast Guard Combat- 4
Injured Tax Fairness Act’’. 5
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SEC. 2. RESTORATION OF AMOUNTS IMPROPERLY WITH-1
HELD FOR TAX PURPOSES FROM SEVERANCE 2
PAYMENTS TO VETERANS OF THE COAST 3
GUARD WITH COMBAT-RELATED INJURIES. 4
(a) A
PPLICATION TO MEMBERS OF THE COAST 5
G
UARDWHEN THECOASTGUARDISNOTOPERATING 6
AS ASERVICE IN THEDEPARTMENT OF THE NAVY.—The 7
Combat-Injured Veterans Tax Fairness Act of 2016 (Pub-8
lic Law 114–292; 10 U.S.C. 1212 note) is amended— 9
(1) in section 3(a)— 10
(A) in the matter preceding paragraph (1), 11
by inserting ‘‘(and the Secretary of Homeland 12
Security, with respect to the Coast Guard when 13
it is not operating as a service in the Depart-14
ment of the Navy, and the Secretary of Trans-15
portation, with respect to the Coast Guard dur-16
ing the period in which it was operating as a 17
service in the Department of Transportation)’’ 18
after ‘‘the Secretary of Defense’’; and 19
(B) in paragraph (1)(A)— 20
(i) in clause (i), by striking ‘‘the Sec-21
retary’’ and inserting ‘‘the Secretary of 22
Defense (or the Secretary of Homeland Se-23
curity or the Secretary of Transportation, 24
with respect to the Coast Guard, as appli-25
cable)’’; 26
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•S 878 IS
(ii) in clause (ii), by striking ‘‘the Sec-1
retary’’ and inserting ‘‘the Secretary of 2
Defense (or the Secretary of Homeland Se-3
curity or the Secretary of Transportation, 4
with respect to the Coast Guard, as appli-5
cable)’’; and 6
(iii) in clause (iv), by striking ‘‘the 7
Secretary’’ and inserting ‘‘the Secretary of 8
Defense (or the Secretary of Homeland Se-9
curity or the Secretary of Transportation, 10
with respect to the Coast Guard, as appli-11
cable)’’; 12
(2) in section 4— 13
(A) in the section heading, by inserting 14
‘‘
AND SECRETARY OF HOMELAND SECU -15
RITY’’ after ‘‘SECRETARY OF DEFENSE ’’; 16
(B) by inserting ‘‘(and the Secretary of 17
Homeland Security with respect to the Coast 18
Guard when it is not operating as a service in 19
the Department of the Navy)’’ after ‘‘The Sec-20
retary of Defense’’; and 21
(C) by striking ‘‘made by the Secretary’’ 22
and inserting ‘‘made by the Secretary of De-23
fense (or the Secretary of Homeland Security 24
with respect to the Coast Guard)’’; and 25
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(3) in section 5— 1
(A) in subsection (a)— 2
(i) by inserting ‘‘(and the Secretary of 3
Homeland Security, with respect to the 4
Coast Guard when it is not operating as a 5
service in the Department of the Navy, 6
and the Secretary of Transportation, with 7
respect to the Coast Guard during the pe-8
riod in which it was operating as a service 9
in the Department of Transportation)’’ 10
after ‘‘the Secretary of Defense’’; and 11
(ii) by striking ‘‘the Secretary to’’ and 12
inserting ‘‘the Secretary of Defense (or the 13
Secretary of Homeland Security or the 14
Secretary of Transportation, with respect 15
to the Coast Guard, as applicable) to’’; and 16
(B) in subsection (b)— 17
(i) in paragraph (2), by striking ‘‘the 18
Secretary’’ and inserting ‘‘the Secretary of 19
Defense (or the Secretary of Homeland Se-20
curity or the Secretary of Transportation, 21
with respect to the Coast Guard, as appli-22
cable)’’; and 23
(ii) in paragraph (3), by striking ‘‘the 24
Secretary’’ and inserting ‘‘the Secretary of 25
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Defense (or the Secretary of Homeland Se-1
curity, with respect to the Coast Guard 2
when it is not operating as a service in the 3
Department of the Navy)’’. 4
(b) D
EADLINES.— 5
(1) I
DENTIFICATION OF AMOUNTS IMPROPERLY 6
WITHHELD AND REPORTING .—The Secretary of 7
Homeland Security and the Secretary of Transpor-8
tation shall carry out the requirements under— 9
(A) section 3(a) of the Combat-Injured 10
Veterans Tax Fairness Act of 2016 (Public 11
Law 114–292; 10 U.S.C. 1212 note), as 12
amended by subsection (a)(1), not later than 13
one year after the date of the enactment of this 14
Act; and 15
(B) section 5 of that Act, as amended by 16
subsection (a)(3), not later than one year after 17
the date of the enactment of this Act. 18
(2) E
NSURING AMOUNTS ARE NOT IMPROPERLY 19
WITHHELD.—The Secretary of Homeland Security 20
shall carry out the requirements under section 4 of 21
the Combat-Injured Veterans Tax Fairness Act of 22
2016 (Public Law 114–292; 10 U.S.C. 1212 note), 23
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as amended by subsection (a)(2), beginning on the 1
date of the enactment of this Act. 2
Æ
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