Rep. Capuano Files Bill to Provide Refundable Military Tax Credit
March 29, 2001 -- Rep. Michael Capuano (D-MA) will file legislation to provide a refundable tax credit for active duty military personnel of each rank and pay grade. However, the bill, entitled the "Military Tax Credit Act of 2001", is designed to provide the greatest relief to those men, women and families having the most difficulty making ends meet.
The bill is a different approach to current efforts to put more money in the pockets of the men and women in our nation's armed services. It creates a refundable tax credit of $2,800 for single and $4,000 for married military filing jointly. If passed, the tax credit would be retroactive to December 31, 2000. The bill will provide a substantial after tax benefit for active duty personnel without increasing the Department of Defense budget. Individuals eligible for the tax credit include full-time National Guard personnel, as well as Army, Navy, Air Force, Marine and Coast Guard personnel on active duty for a period of more than 30 days.
"This tax credit will actually reduce the tax liability of our men and women in uniform, resulting in an average net pay increase of at least 8.9%. While I strongly support a straightforward pay raise for our military personnel, I believe that there is always more than one way to accomplish a goal," stated Rep. Capuano. The legislation will be referred to the House Committee on Ways and Means.