On December 18, 2007, the House passed the Veterans Guaranteed Bonus Act, H.R. 3793, which provides essential financial security to our injured servicemen and women by guaranteeing full payment of bonuses earned and owed to them.
Rep. Jason Altmire (PA-04), primary sponsor of the bill, spoke in favor of the legislation:
The House also passed the HEART Act (Heroes Earnings Assistance and Relief Act), H.R. 3997, which provides $2 billion in tax relief for military families.
Veterans Guaranteed Bonus Act (H.R. 3793)
The bill fully addresses the military bonus problems first highlighted by the Dole-Shalala Wounded Warriors Commission -- providing essential financial security to our injured men and women by guaranteeing full payment of bonuses earned and owed to them. The bill:
- Guarantees that service members who die or are discharged for disability will not be required to repay any portion of their bonus;
- Mandates the DoD to provide full bonuses to any service members who die or are discharged for disability; and,
- Requires bonuses to be paid within 90 days of discharge.
- The Veterans Guaranteed Bonus Act is supported by 36 military and veterans’ organizations, including the Military Coalition, Veterans of Foreign Wars, Iraq and Afghanistan Veterans of America, Fleet Reserve Association, Disabled American Veterans, the Non Commissioned Officers Association, and the Blinded Veterans Association.
Heroes Earnings Assistance and Relief Tax Act (H.R. 3997)
This bill will make permanent essential tax relief for our military families, including tax relief under the Earned Income Tax Credit, incentives to make sure that reservists called up for active duty do not suffer a pay cut, and more low-interest home loans for veterans.
- Make tax relief for families of soldiers in combat under the EITC permanent. The bill makes permanent current law to include combat pay as earned income for purposes of the Earned Income Tax Credit (EITC). At the end of the year, soldiers’ families working to get into the middle class will be denied needed tax relief if combat pay is not counted for purposes of receiving the Earned Income Tax Credit.
- Make sure that reservists called up for active duty do not suffer a pay cut. Provides a tax credit of up to $4,000 for small businesses who continue to pay their National Guard and Reserve employees when they are called up to serve. According to a DOD survey, 55 percent of married Guard members and reservists suffer a loss of income when being called to active duty.
- Make it easier for veterans to become homeowners. The bill would make thousands of veterans eligible for low-interest loans by making changes to the qualified mortgage bond programs used to help veterans achieve homeownership.
- Make permanent other tax provisions to relieve economic hardships for military families. For example, the bill makes permanent IRS provisions to:
- permit active duty reservists to make penalty-free withdrawals from retirement plans;
- permit an employer to make contributions to a qualified retirement plan on behalf of an employee killed or disabled in combat;
- count extra pay for active duty military personnel from their previous civilian employer for retirement purposes;
- permit recipients of military death benefit gratuities to roll over the amounts received, tax-free, to a Roth IRA or an Education Savings Account; and
- several other benefits.
- Include tax benefits for other public servants who face risk, such as volunteer firefighters and Peace Corps volunteers. For example, the bill clarifies that rebates of state and local taxes for volunteer firefighters and that reimbursements for expenses incurred in the line of duty by volunteer firefighters are not taxable.
- The bill is supported by the American Legion, National Military Family Association, the Blinded Veterans Association, National Volunteer Fire Council, the International Association of Fire Chiefs, National Volunteer Fire Council, National Association of Towns and Townships, National Fire Protection Association, and the Governors of Oregon and Wisconsin.
- Fully Paid for. The bill is fiscally responsible and fair, paid for by increasing penalties for corporations and partnerships that fail to file taxes.
