WASHINGTON, DC – Today, Congressman Delahunt praised legislation passed unanimously yesterday in the House of Representatives that ensures that injured veterans retain their enlistment bonuses.

“When we send our men and women to fight for their country, it is our responsibility to follow through on our commitment to giving them the care that they need and deserve,” said Delahunt. “By passing this legislation unanimously, the House has taken a stand, saying it is unconscionable for the Department of Defense to take away an enlistment bonus from a member of the Armed Services solely because they were wounded in battle. I urge the Senate to take swift action to fix this grave injustice.”

The Veterans Guaranteed Bonus Act of 2007, H.R. 3793 was passed unanimously in the House by a vote of 405 to 0 and is in direct response to reports that the Army tried to collect bonuses from troops who were discharged after being wounded.

This legislation specifically would:

• Require the Department Of Defense to continue to pay bonuses that an injured veteran “would continue to be entitled to if the member was not retired or separated.”
• Require DOD to pay bonuses in full within 30 days to veterans discharged because of combat-related wounds.
• Fully address 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 House also passed legislation yesterday that helps reduce the financial burden placed on the members of the Armed Forces military by providing tax relief for combat pay, retirement savings, or purchasing homes. The Heroes Earnings Assistance and Relief Tax Act of 2007, H.R. 3997, was approved with a vote of 411 to 0.

Specifically this legislation would:

• Include tax incentives for employers of military reservists and for members of the National Guard who provide assistance to employees who are called to active duty.
• Make permanent a provision that allows soldiers to count their non-taxable combat pay when figuring their eligibility for the earned income tax credit, a refundable federal income tax credit that puts cash in the hands of working individuals and families.
• Cut taxes for small businesses when they continue paying members of the National Guard and Reserve who are called to duty.
• Eliminate red tape for reporting of income when companies continue paying members of the National Guard and Reserve who are called to duty.  This makes it easier for reservists to file their taxes and simpler for employers to keep contributing to those employees’ retirement plans.
• Allow the families of soldiers killed in the line of duty to contribute up to 100 percent of survivor benefits to a retirement savings account.
• Allow active duty troops to withdraw money from retirement plans and give them two years to replace the funds without tax penalty.

Both of these legislative proposals will now be considered in the U.S. Senate.

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