Crapo, Senate approve new tax changes for military, families, employers
Washington, DC - Idaho Senator Mike Crapo joined with the full Senate to approve new tax relief for members of the U.S. military, their families and their employers. The Heroes Earnings Assistance and Relief Act (HEART) was approved by unanimous consent and is expected to be signed into law by the President. The U.S. House of Representatives has already approved the measure. Crapo co-sponsored the Senate version of the bill.
"This legislation will make it easier for members of the military to purchase a home and save for retirement," noted Crapo, a member of the Senate Finance Committee which earlier approved a similar tax relief package. "The legislation will also make it easier for employers of veterans to keep their jobs open if the individual is called back to active duty."
The HEART Act provides for several tax credits and incentives for both active duty military and their families. Among the benefits are a refundable federal income tax credit that assists lower-income families, language clarifying that all active duty personnel are eligible for economic stimulus payments, the ability to withdraw retirement funds tax-free for a two-year period and a permanent allowance for all veterans to use qualified mortgage bonds to purchase their homes.