[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2655 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2655

    To provide relief for veterans with a disability rated as total.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2008

 Mr. Martinez introduced the following bill; which was read twice and 
 referred to the Committee on Finance under authority of the order of 
                    the Senate of February 14, 2008

_______________________________________________________________________

                                 A BILL


 
    To provide relief for veterans with a disability rated as total.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELIMINATION OF TAXATION OF SOCIAL SECURITY BENEFITS FOR 
              VETERANS WITH DISABILITY RATED AS TOTAL.

    (a) In General.--Section 86(b) of the Internal Revenue Code of 1986 
(relating to taxpayers to which subsection (a) applies) is amended by 
adding at the end the following new paragraph:
            ``(3) Veterans with disability rated as total excluded.--
                    ``(A) In general.--A taxpayer is not described in 
                this subsection for any taxable year if such taxpayer 
                is a veteran who--
                            ``(i) has a service-connected disability 
                        rated as total under chapter 11 of title 38, 
                        United States Code (determined as of the last 
                        day of such taxable year), or
                            ``(ii)(I) has a service-connected 
                        disability rated 50 percent or more under such 
                        chapter, and
                            ``(II) is permanently and totally disabled 
                        from a non-service-connected disability not the 
                        result of the veteran's willful misconduct.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Permanently and totally disabled.--
                        The term `permanently and totally disabled' has 
                        the meaning given such term in section 1502 of 
                        title 38, United States Code.
                            ``(ii) Service-connected.--The term 
                        `service-connected' has the meaning given such 
                        term in section 101 of such title.
                            ``(iii) Veteran.--The term `veteran' has 
                        the meaning given such term in section 101 of 
                        such title.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 2. DEFINITION OF ANNUAL INCOME FOR PURPOSES OF SECTION 8 AND OTHER 
              PUBLIC HOUSING PROGRAMS.

    (a) In General.--The Secretary of Housing and Urban Development 
shall amend section 5.609(c) of title 24, Code of Federal Regulations 
(relating to the exclusion of amounts from the calculation of annual 
income), to require that the definition of annual income for purposes 
of section 8 and other public housing programs does not include 
disability or pension benefits of the Department of Veterans Affairs 
awarded to a veteran who--
            (1) has a service-connected disability rated as total under 
        chapter 11 of title 38, United States Code (determined as of 
        the last day of such taxable year); or
            (2)(A) has a service-connected disability rated 50 percent 
        or more under such chapter; and
            (B) is permanently and totally disabled from a non-service-
        connected disability not the result of the veteran's willful 
        misconduct.
    (b) Definitions.--In this section:
            (1) Permanently and totally disabled.--The term 
        ``permanently and totally disabled'' has the meaning given such 
        term in section 1502 of title 38, United States Code.
            (2) Service-connected.--The term ``service-connected'' has 
        the meaning given such term in section 101 of such title.
            (3) Veteran.--The term ``veteran'' has the meaning given 
        such term in section 101 of such title.
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