Cape News

The U.S. House of Representatives has approved legislation aimed at expanding support for veterans services organizations (VSOs) through tax-deductible donations. The bill, H.R. 1432, known as the VSO Equal Tax Treatment Act (VETT Act), was introduced by Representatives Brad Wenstrup (OH-02) and Jimmy Panetta (CA-19). It seeks to make all federally chartered tax-exempt VSOs eligible for deductible charitable contributions.

During the legislative debate, Ways and Means Committee Chairman Jason Smith (MO-08) underscored that the current regulations prevent tax-deductible donations from reaching VSOs serving millions of veterans, particularly those from more recent conflicts.

“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," Smith stated. He explained that existing laws prohibit certain VSOs from accepting tax-deductible donations if over 10 percent of their members are not considered 'wartime veterans,' a restriction he described as outdated.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," Smith added. "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.”

The VETT Act addresses these issues by allowing deductible charitable contributions to all federally chartered tax-exempt organizations serving current and former members of the Armed Forces. The bill aims to remove barriers faced by VSOs supporting veterans of more recent conflicts.

H.R. 1432 was previously approved by the Ways and Means Committee with a unanimous vote of 42-0.