June 17,2008

Baucus, Grassley Military Tax Relief Package Becomes Law

Provisions crafted by Finance leaders will help military families save money, boost businesses that employ reservists

Washington, DC – Senate Finance Committee Chairman Max Baucus (D-Mont.) and
Ranking Member Chuck Grassley (R-Iowa) today hailed the signing of the Heroes
Earnings Assistance and Relief Tax Act (HEART) into law. The bill will provide more
than $1.2 billion dollars in tax relief to benefit America’s veterans and soldiers. Baucus
and Grassley worked closely with House colleagues to combine their own military tax
relief bill – the Defenders of Freedom Tax Relief Act of 2007 – with an earlier version of
the House’s HEART Act. HEART was approved by the Senate and the House of
Representatives in late May. The legislation includes tax cuts for members of the
military who are receiving combat pay, saving for retirement, or purchasing their own
homes. It also helps civilian employers of military men and women keep jobs available
for soldiers who are called to active duty.

“I worked to get this bill to the President’s desk because tax relief for America’s
military men and women is the right thing to do,” Baucus said. “This bill helps our
fighting forces and our veterans purchase their own homes, save for their retirements, and put their kids through college. It helps businesses keep reservists on the payroll while they are overseas. This new law provides timely and appropriate tax relief to those who sacrifice for our freedom.”

“Military service makes taxes complicated and sometimes unfair,” Grassley said.
“People shouldn’t suffer a tax hit to serve our country. We need to make sure
military men and women have fair treatment under the tax code. It’s a no-brainer.”

Final HEART Act provisions, including many originally introduced by Baucus and
Grassley in the Defenders of Freedom Act, can be found in the printer-friendly version
of this release.

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