WASHINGTON, DC – Thousands of reservists and National Guard members serving overseas have put their lives on hold to defend our nation.  When called into active duty, they must leave family and friends behind for months at a time.  They also must often leave jobs that pay much more than they earn through their military services.  While employers are required to hold their positions until they return, they do not have to provide any salary for deployed employees. 

Congresswoman Nita M. Lowey (D-Westchester/Rockland) is working to improve the financial situation of Guard members and reservists by encouraging their employers to continue to pay their wages.

“Reservists and Guard members give up so much already when they are called into service.  Their families suffer while their loved ones are deployed.  Congress can and should do more to alleviate the financial burden during this difficult period,” said Lowey.

Today, Lowey introduced legislation to improve the financial well-being of deployed reservists and Guard members.  The Guard and Reserve Financial Stability Act of 2005 encourages employers to continue to provide a salary for deployed workers.  Employers who did so would receive:

• A federal tax credit worth 50% of the salaries that employers continue to pay activated Guard and reserve employees (up to $15,000 per employee) to make up for the income gap suffered during active duty; and
• Federal tax credits of $6,000 for small businesses and $10,000 for small manufacturers to help them hire temporary workers to fill-in for activated employees.

The legislation also requires a study by the Government Accountability Office (GAO) of the challenges in recruiting individuals for the reserve and National Guard and whether tax credits are an effective incentive for businesses to hire reservists and Guard members. 

“Mortgage payments and bills don’t stop when servicemen and women are activated and deployed,” said Lowey.  “Many employers continue to pay the salary of activated employees to help ease the financial burden for military families, but this can be difficult, especially for small businesses.  My bill gives back to those who already assist their activated employees while encouraging others to do the same.  This added income can help ease the strain on military families during difficult periods of deployments, and I’ll work with my colleagues to enact this common sense measure.”