Wenstrup introduces bipartisan bill to update tax rules for veterans’ service groups

U.S. Rep. Brad Wenstrup (R-OH) on Aug. 10 sponsored the Charitable Equity for Veterans Act of 2018, a bipartisan proposal that would update tax requirements for veterans’ service organizations.

H.R. 6661 would amend the Internal Revenue Code of 1986 to provide for the deductibility of charitable contributions to certain organizations for members of the Armed Forces, according to the congressional record summary. U.S. Rep. Ron Kind (D-WI) signed on as the original cosponsor of the measure.

Currently, the law only allows tax-deductible donations to 501(c)(19) veterans’ service organizations that maintain at least a 90-percent membership of wartime veterans. H.R. 6661 would lift that requirement for congressionally chartered veterans’ service organizations, which then could accept tax-deductible donations, according to a statement released by Rep. Wenstrup’s office.

“All veterans deserve our support and gratitude, regardless of the period in which they served,” said Rep. Wenstrup. “Unfortunately, due to this outdated requirement in the tax code, some veterans’ organizations don’t have the same access to tax-deductible donations that other organizations have, simply because they choose to welcome all veterans as members.”

H.R. 6661 would correct what the congressman called an “oversight,” and provide “all of America’s veterans the appreciation their service deeply deserves.”

Rep. Kind noted that veterans’ service organizations in his home state of Wisconsin play an important role in supporting veterans “by helping to provide resources and benefits that our veterans have earned and deserve.”

H.R. 6661 “cuts needless government red tape,” he added, and ensures veterans receive such resources, regardless of when and where they served.

The Ohio and Wisconsin chapters of American Veterans (AMVETS), a non-partisan, volunteer-led organization formed by U.S. military veterans of World War II, voiced support for H.R. 6661.

“AMVETS and other veteran groups will benefit tremendously from this legislation,” said Don Lowers, the Ohio AMVETS commander. “This bill will allow us to raise necessary funding to better serve Ohio veterans.”

Lowers added that members were proud of Rep. Wenstrup “for taking this unfair tax on veterans charities head on.”

Dale Peterson, the Wisconsin AMVETS commander, said 99 percent of the nation’s 1.5 million existing nonprofit organizations are allowed to receive tax-deductible charitable gifts while many veterans’ groups aren’t permitted to do so. “AMVETS continues to fight for all veterans, and we are thankful that Representative Kind is fighting for us on this unfair tax burden on vets,” he said.

H.R. 6661 has been referred for consideration to the U.S. House Ways and Means Committee.