II 110th CONGRESS 2d Session S. 2655 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.
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.
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.