December 06, 2024

Duckworth, Cassidy Applaud Senate Passage of Their Bipartisan Bill to Support Veteran Organizations, Which Is Now Set to Become Law

 

[WASHINGTON, D.C.] – Combat Veteran and U.S. Senator Tammy Duckworth (D-IL)—who served in the Reserve Forces for 23 years before retiring at the rank of Lieutenant Colonel—and U.S. Senator Bill Cassidy, M.D., (R-LA) celebrated the U.S. Senate passing their Veteran Service Organization (VSO) Equal Tax Treatment (VETT) Act, which would expand the deductibility of charitable contributions to all federally chartered tax-exempt organizations serving current and former members of the Armed Forces. Specifically, it overturns a provision that prohibits Veteran organizations from accepting tax-deductible donations if their membership contains over 10 percent peacetime Veterans. The bill passed the U.S. House of Representatives in September and now heads to the President’s desk to be signed into law.

“It’s critical we do all we can to support Veterans Service Organizations, which provide vital assistance and community programming for those who served our nation,” said Senator Duckworth. “I’m proud our bipartisan legislation passed the Senate and is now that much closer to reforming our tax code so that it promotes—rather than discourages—involvement in these community organizations, helping ensure they can continue to be a resource for Veterans to lean on.”

“Giving back to the men and women who wore the uniform for our freedom is a noble cause,” said Dr. Cassidy. “If this bill incentivizes one more American to help our veterans, then it has been a good day in the U.S. Senate.”

Nearly 2.5 million of the 20 million Veterans across the U.S. are peacetime Veterans. Certain congressionally-chartered Veterans organizations are forced to deny peacetime Veterans membership to avoid dipping below the 90% threshold and losing their ability to accept tax-deductible donations.

The VSO Equal Tax Treatment Act would:

  • Provide that charitable contributions made to a federally chartered Veteran Service Organization exempt from tax under section 501(c)(19) of the Internal Revenue Code are deductible for Federal income tax purposes. 
  • Amend the current law requiring 90 percent of members of these organizations to be considered “wartime Veterans.”
  • Stipulate that such charitable contributions qualify for the more generous charitable contribution percentage limitations that apply to contributions to organizations listed in section 170(b)(1)(A) of the Code.

The VETT Act is endorsed by AMVETS, American Legion, AMSUS, Commissioned Officers Association of the USPHS, Fleet Reserve Association, Jewish War Veterans, Military Order of the World Wars, Non Commissioned Officers Association, U.S. Coast Guard Chief Petty Officers Association and TREA: The Enlisted Association.

Duckworth has dedicated her life to serving America’s servicemembers and Veterans. This year, she helped secure $2.9 billion to support family caregivers of disabled Veterans and $2.4 billion to expand benefits and services for military and Veteran caregivers to include health care and mental health services, among other things. Duckworth is leading the push to pass her bipartisan Veteran Entrepreneurship Training Act, which would codify the Small Business Administration’s “Boots to Business” (B2B) program—a successful entrepreneurship education and training program for servicemembers, Veterans, National Guard and Reserve Members as well as military spouses transitioning from military service to civilian life—into law through 2028.

Duckworth is also a strong advocate for our Veterans who were wrongfully deported by the same nation they sacrificed to defend. For years, Duckworth has reintroduced her Strengthening Citizenship Services for Veterans Act, which would help wrongfully deported Veterans gain citizenship. She has also repeatedly introduced and pushed for a comprehensive package of bills that would help prevent future wrongful servicemember and Veteran deportations.

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