U.S. Senator Ken Salazar Member of the Agriculture, Energy and Veterans Affairs Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release December 14, 2007		CONTACT:Stephanie Valencia – 202-228-3630 Cody Wertz 303-350-0032
Sen. Salazar Helps Secure Over $1 Billion in Tax Relief for America’s Fighting Men and Women WASHINGTON, DC – This week, the United States Senate passed H.R. 3997, the Defenders of Freedom Tax Relief Act, which provides over $1 billion in much-needed tax relief for American troops, veterans and the employers that hire them. United States Senator Ken Salazar, an original co-sponsor of the Senate version of this legislation that was incorporated into the final proposal, lauded the bill’s passage as an important step in renewing our National commitment to our fighting men and women, our veterans, and their families. “It is crucial that we repay the immense debt of gratitude owed to our Nation’s fighting men and women,” said Senator Salazar. “This bipartisan legislation signals an important step towards fully honoring that debt, and I am proud to support it.” The Defenders of Freedom Tax Relief Act provides creates, extends, and expands several important tax benefits for our military service members when they receive combat pay, save for retirement or purchase a new home. The bill also includes tax assistance for employers who must provide differential payments to any employee who is called up for active duty. The legislation provides $1.2 billion (fully offset) in tax relief over ten years for service members and veterans and contains the following key provisions: Veteran mortgage bonds: Qualified mortgage bonds may be issued to finance mortgages for veterans who served in active military without regard to the first-time homebuyer requirement. The proposal would make this provision, which expires at the end of 2007, permanent. BAH disregarded for low-income housing: To make housing financed by low-income housing tax credits (LIHTC) available to low-income service members, the proposal excludes service members’ basic allowance for housing (BAH) from income when determining eligibility for the low-income housing tax credit (LIHTC). EITC combat pay election: To maximize the earned income tax credit, a service member may elect to include their combat pay as earned income for purposes of the EITC. The proposal would make this provision, which expires at the end of 2007, permanent. A full summary of the tax credits and other provisions included in the proposal can be viewed here. Once the U.S. House of Representatives takes up and passes the Senate-approved bill, it will be sent to the President for his signature. ###