WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Tammy Duckworth (D-IL) applaud the U.S. Senate passage of their Veteran Service Organization (VSO) Equal Tax Treatment (VETT) Act, which would expand the deductibility of charitable contributions to all federally chartered tax-exempt organizations serving current and former members of the Armed Forces. Specifically, it overturns a provision that prohibits veteran organizations from accepting tax-deductible donations if their membership contains over 10 percent peacetime veterans. The bill passed the U.S. House of Representatives and now heads to the president’s desk for signature into law.
“Giving back to the men and women who wore the uniform for our freedom is a noble cause,” said Dr. Cassidy. “If this bill incentivizes one more American to help our veterans, then it has been a good day in the U.S. Senate.”
“It’s critical we do all we can to support Veterans Service Organizations, which provide vital assistance and community programming for those who served our nation,” said Senator Duckworth. “I’m proud our bipartisan legislation passed the Senate and is now that much closer to reforming our tax code so that it promotes—rather than discourages—involvement in these community organizations, helping ensure they can continue to be a resource for Veterans to lean on.”
Nearly 2.5 million of the 20 million veterans across the U.S. are peacetime veterans. Certain congressionally-chartered veterans organizations are forced to deny peacetime veterans membership to avoid dipping below the 90% threshold and losing their ability to accept tax-deductible donations.
The VSO Equal Tax Treatment Act would:
- Provide that charitable contributions made to a federally chartered veteran service organization exempt from tax under section 501(c)(19) of the Internal Revenue Code are deductible for Federal income tax purposes.
- Amend the current law requiring 90 percent of members of these organizations to be considered “wartime veterans.”
- Stipulate that such charitable contributions qualify for the more generous charitable contribution percentage limitations that apply to contributions to organizations listed in section 170(b)(1)(A) of the Code.
The VETT Act is endorsed by AMVETS, American Legion, AMSUS, Commissioned Officers Association of the USPHS, Fleet Reserve Association, Jewish War Veterans, Military Order of the World Wars, Non Commissioned Officers Association, U.S. Coast Guard Chief Petty Officers Association, and TREA: The Enlisted Association.
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