The Military Coalition (TMC) – which represents 5.5 million servicemembers, veterans, their families and survivors, and counts MOAA among its founding members – recently urged members of Republican “Tax Teams” to support several key tax provisions aimed at addressing employment barriers, financial challenges, and long-term economic stability for military and veteran families.

The teams, announced earlier this year by the House Ways and Means Committee chairman and the chairman of the panel’s tax subcommittee, were formed to study key tax provisions set to expire in 2025 and to identify potential legislative solutions.

[RELATED: These Tax Rules Will Expire in 2025]

TMC will continue to press the full committee in the 119th Congress on the following issues included in the Oct. 16 letter:

• Military Spouse Hiring Act (H.R. 1277/S. 596): This bill seeks to expand the Work Opportunity Tax Credit (WOTC) to include military spouses as a target group. Such an expansion would incentivize businesses to hire these skilled and qualified spouses, helping alleviate financial burdens for military families. Nearly 7,000 messages in support of this legislation had been sent via MOAA’s Legislative Action Center as of Oct. 23; you can add your voice at this link.
  
  
• Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6833): This bill aims to modernize the WOTC by increasing the wage base for tax credits, encouraging employers to provide longer-term employment opportunities for individuals who face employment barriers.

With the WOTC set to expire in December 2025, there will be opportunities in the new Congress to enhance this longstanding, successful program and advocate for the long-overdue inclusion of military spouses.

[ACT NOW: Urge Your Lawmakers to Co-Sponsor the Military Spouse Hiring Act]

Coalition members also urged the Tax Teams to consider these other important issues:

• Reservist Pay Equity Act (H.R. 3253): Reservists have spent significant time on active duty since the 9/11 attacks, but the tax credit for employers providing differential pay has not kept pace with economic changes. This bill proposes increasing the tax credit from 20% to 50% of up to $20,000 in differential pay, with adjustments for cost of living, ensuring more equitable compensation for reservists.
  
  
• Supporting Veteran Caregivers: Many caregivers leave the workforce to care for veterans with disabilities, impacting their long-term financial security and that of their families. The letter asks lawmakers to ensure caregivers who receive a stipend under the VA’s Program of Comprehensive Assistance for Family Caregivers (PCAFC) have a viable path to contributing to Social Security and Medicare benefits and increasing their long-term financial security.

Unlike most legislation backed by The Military Coalition, these goals won’t be included in the National Defense Authorization Act (NDAA) or a veteran omnibus bill. TMC will need to intensify efforts to educate members of the committees of jurisdiction (Ways and Means in the House, Finance in the Senate) on the positive impact these tax provisions would have for military and veteran families, as well as caregivers.

With only 6.2% of Americans having served in the military, and an even smaller percentage of lawmakers with firsthand military experience, there is a growing disconnect between policymakers and the unique challenges faced by military families. This gap in understanding means advocacy groups like MOAA and other TMC members must work harder in explaining the significance of tax benefits that provide financial stability, recognize the sacrifices of service, and support long-term well-being for those who serve and have served, and their families.