[Congressional Record Volume 170, Number 144 (Tuesday, September 17, 2024)]
[House]
[Pages H5272-H5273]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      VSO EQUAL TAX TREATMENT ACT

  Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1432) to amend the Internal Revenue Code of 1986 to 
provide for the deductibility of charitable contributions to certain 
organizations for members of the Armed Forces, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1432

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``VSO Equal Tax Treatment 
     Act'' or as the ``VETT Act''.

     SEC. 2. DEDUCTIBILITY OF CHARITABLE CONTRIBUTIONS TO CERTAIN 
                   ORGANIZATIONS FOR MEMBERS OF THE ARMED FORCES.

       (a) In General.--Section 170(c) of the Internal Revenue 
     Code of 1986 is amended by inserting after paragraph (5) the 
     following new paragraph:
       ``(6) An organization described in section 501(c)(19) that 
     is a federally chartered corporation.''.
       (b) Percentage Limitation.--Section 170(b)(1)(A) of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of clause (viii), by adding ``or'' at the end of 
     clause (ix), and by inserting after clause (ix) the following 
     new clause:
       ``(x) an organization described in section 501(c)(19) that 
     is a federally chartered corporation,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Missouri (Mr. Smith) and the gentleman from Illinois (Mr. Davis) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Missouri.


                             General Leave

  Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous material on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 1432, the VSO Equal Tax 
Treatment Act, or VETT Act, introduced by my Ways and Means colleague, 
Dr. Brad Wenstrup, and Representative   Jimmy Panetta.
  In short, this legislation makes it easier for those looking to 
support our veterans to do so through donations to the veterans service 
organization of their choosing.
  Right now, certain VSOs are prohibited from accepting tax-deductible 
donations if over 10 percent of the members in their organization are 
not considered ``wartime veterans,'' but this prohibition is outdated.
  As our veteran populations age, this needlessly restrictive 
definition excludes veteran populations who joined the service 
following the Vietnam war and before the Persian Gulf war.
  An estimated 2.4 million veterans living today do not meet the 
definition of wartime veterans, including some of the men and women who 
bravely served this country in Iraq and Afghanistan.
  VSOs provide critical services to our Nation's veterans. They help 
with filing service-connected claims with the VA. They provide other 
types of assistance when it comes to navigating the confusing web of 
government programs our veterans rely on.
  They also stand in support of our military families, the moms and 
dads, the husbands and wives, and the sons and daughters of our 
veterans.
  Under this legislation, our tax code will no longer discriminate 
among our veterans service organizations. Charitable contributions to 
all federally chartered, tax-exempt organizations that serve current 
and former members of the military will be tax deductible.
  The Ways and Means Committee approved this legislation unanimously. I 
urge all my colleagues to follow our bipartisan lead and vote ``yes'' 
on this commonsense bill to support our veterans, and I reserve the 
balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1432, the VETT Act. Veterans 
service organizations provide vital and integral support to our 
servicemembers in their local communities.
  This bill updates outdated rules in the tax code, and in doing so, 
ensures that Americans have the needed incentives to support these 
organizations that serve those who served our country.
  By providing equal treatment to veterans that served in war and those 
who served in peacetime, we are ensuring that VSOs are able to grow and 
maintain their memberships without having to risk losing their ability 
to receive tax deductible charitable donations.
  Mr. Speaker, if there is any group in our country, in our society 
that deserves all of the effort that we can put forth to make sure that 
they receive the fairest of treatment in terms of what they have done 
to serve our country, this is something I think we owe them all.
  I support this legislation and reserve the balance of my time.

                              {time}  1645

  Mr. SMITH of Missouri. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Ohio (Mr. Wenstrup).
  Mr. WENSTRUP. Mr. Speaker, I rise in support of my bill, H.R. 1432, 
the VSO Equal Tax Treatment Act, or the VETT Act.
  The VETT Act is a commonsense, bipartisan bill, which I have been 
proud to lead since 2018. As a veteran myself, I know firsthand how 
these organizations offer vital support and a sense of community to 
Americans who wore our Nation's uniform and sacrificed so much for our 
country.
  All veterans deserve our support and gratitude, regardless of the 
period in which they served. Yet, under the current tax code, veterans 
service organizations whose membership consist of less than 90 percent 
wartime veterans are prohibited from accepting tax-deductible 
donations.
  This disadvantages the VSOs that serve a broad membership of both 
wartime and nonwartime veterans, and

[[Page H5273]]

forces them to choose between the significant benefit of being able to 
accept tax-deductible donations for serving the 2.4 million veterans 
who do not meet the definition of wartime veterans.
  It is long past time that we fix this antiquated provision in the tax 
code by updating the definition of charitable contributions so that it 
includes congressionally chartered veterans service organizations. The 
VETT Act would do exactly that, ending an unfair tax on Americans who 
donate to these deserving VSOs.
  This legislation is supported by a host of VSOs, including AMVETS, 
The American Legion, Fleet Reserve Association, Jewish War Veterans of 
the USA, Military Order of the World Wars, Non Commissioned Officers 
Association, U.S. Coast Guard Chief Petty Officers Association, and 
TREA: The Enlisted Association.
  I thank my partner on this bill, Representative   Jimmy Panetta, who 
has been a tremendous advocate for veterans in Congress and who I have 
been proud to work with on this bill and other legislation, especially 
concerning veterans.
  I would be remiss if I didn't share my appreciation for our former 
colleague, Representative Ron Kind, who was the Democrat lead on this 
bill in previous Congresses.
  Mr. Speaker, I urge all my colleagues to support this bill and fix 
this error in the tax code for the benefit of our veteran community.
  Mr. DAVIS of Illinois. Mr. Speaker, I have no further requests for 
time, and I am prepared to close.
  Mr. Speaker, I thank all of my colleagues for their work on this 
legislation, especially Mr. Panetta and Dr. Wenstrup.
  Again, if there is any group who could expect and should expect the 
greatest efforts to make sure that they are protected, it is our 
veterans.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SMITH of Missouri. Mr. Speaker, there is a reason this bill 
passed the Ways and Means Committee 42-0. There is no denying this is 
the right thing to do. I urge all my colleagues to vote ``yes,'' and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Missouri (Mr. Smith) that the House suspend the rules 
and pass the bill, H.R. 1432, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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