Coast Guard Combat-Injured Tax Fairness Act

HR 2973 amends the Combat-Injured Veterans Tax Fairness Act to ensure Coast Guard veterans with combat-related injuries receive tax refunds for improperly withheld severance payments, regardless of whether the Coast Guard operates under the Department of the Navy, Homeland Security, or Transportation. It updates the law to include the Secretary of Homeland Security and Secretary of Transportation as responsible officials for processing these refunds during periods when the Coast Guard is not part of the Navy. The bill requires these secretaries to identify and refund improperly withheld amounts within one year of enactment and to prevent future withholding errors immediately. This directly affects Coast Guard veterans injured in combat during service periods managed by Homeland Security or Transportation, not just those under the Navy.