Bill to Provide Tax Relief for Military Families Sent to President, McNerney Announces

Press Release

BILL TO PROVIDE TAX RELIEF FOR MILITARY FAMILIES SENT TO PRESIDENT, MCNERNEY ANNOUNCES

Today, Congressman Jerry McNerney (CA-11) announced that bipartisan legislation to provide tax relief for military families, the Heroes Earnings Assistance and Relief Tax Act (HEART Act), has been sent to President Bush for his signature.

"Our men and women in uniform - and their families - have sacrificed greatly for our nation," Rep. McNerney said. "Particularly in a weak economy, soldiers and military families often face undue financial hardships due to lengthy and multiple deployments. The HEART Act provides much needed and deserved tax relief."

The legislation, H.R. 6081, in addition to ensuring that military families receive their Economic Stimulus rebate checks, ensures that combat pay be treated as income for purposes of the Earned Income Tax Credit (EITC). Many soldiers' families are denied needed tax relief when combat pay is not counted for purposes of qualifying for the EITC. Over 1,500 California military families with a family member in a combat zone will benefit from this legislation.

The HEART Act also helps ensure reservists who are called up for active duty are not subject to a pay cut. A recent Department of Defense survey found that 55 percent of married Guard members and reservists suffer a loss of income when being called to active duty. The HEART Act 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 to active duty.

The HEART Act previously passed both the House and Senate.

Source