Bill would give combat vets home tax breaks - Marine Corps News | News from Afghanistan & Iraq - Marine Corps Times

Bill would give combat vets home tax breaks

Two Republican lawmakers are proposing a novel benefit for combat veterans that would provide a tax credit of up to $7,500 for buying a home.

Reps. Gus Bilirakis and Adam Putnam, both from Florida, may be proposing the idea too late for consideration this year, because Congress already has passed a military-related tax bill and generally would not pass such an idea as a freestanding measure.

Their new bill, HR 6181, called the American Heroes’ Homeowner Assistance Act, would provide a one-time tax credit of up to 10 percent of a home’s purchase price, with a maximum of $7,500, for service since 2001 in a combat zone. The tax credit also would apply to the survivors of service members who died of combat-related causes since 2001.

According to a statement from the two lawmakers, the idea is to make homeownership more affordable to service members and their families.

Bilirakis is the sponsor of several bills to increase military and veterans’ benefits. “The men and women who are putting their lives on the line in defense of our nation should be provided with every opportunity to resume a normal life with their families after returning from war,” he said. “Assistance should be made available to these warfighters whose lives, families and civilian careers have been seriously and often detrimentally affected as a result of their service in a war zone.”

Putnam said the bill would provide a “meaningful and tangible benefit” for combat veterans.

On May 22, Congress put the finishing touches on the Heroes Earning Assistance and Relief Tax Act of 2008, which:

* Exempts married taxpayers filing jointly from the identification requirement for the 2008 economic stimulus rebate if at least one of the filers is a current member of the armed forces.

* Makes permanent the option for military taxpayers to treat combat zone compensation as earned income for the purpose of qualifying for the Earned Income Tax Credit.

* Makes permanent an exemption from the first-time homebuyer rule for veterans using mortgage revenue bonds to purchase a residence.

That bill, HR 6081, has been undergoing an extensive review by congressional clerks before being presented to the White House for President Bush’s consideration.

House and Senate aides involved in tax legislation said it is unlikely Congress will pass another military-only tax bill this year. And in an election year, when discussions on tax changes quickly become mired in partisan politics, the chances for a larger tax measure are not good.