Bipartisan legislation introduced on Nov. 3 by U.S. Rep. Steve Womack (R-AR) would eliminate a tax burden imposed on United States military personnel regarding their Basic Needs Allowance (BNA) benefits.
“It makes sense to treat the BNA just like other military benefits outside of earned income,” Rep. Womack said. “It’s simple: taxing a benefit meant to help the most vulnerable defies logic.”
Sen. Womack sponsored the BNA Fairness Act, H.R. 9275, with four original cosponsors, including U.S. Reps. Don Bacon (R-NE) and Tim Ryan (D-OH), to amend the Internal Revenue Code of 1986 to exclude from gross income the BNA of members of the U.S. Armed Forces, according to the text of the bill.
If enacted, H.R. 9275 specifically would amend the tax code to exclude BNA benefits from taxable income, putting BNA in line with the tax status of other military benefits, including Basic Allowance for Housing and Basic Allowance for Subsistence, according to a bill summary provided by Rep. Womack’s office.
“To me, this allowance is a ‘combat multiplier’ through enhanced performance by reducing financial pressure at home,” said Rep. Womack. “I intend to ensure our men and women in uniform are provided their full benefits.”
The Military Officers Association of America Arkansas Council of Chapters endorsed the bill, which has been referred to the U.S. House Ways and Means Committee for consideration.