H.R. 2973 — Coast Guard Combat-Injured Tax Fairness Act

This section amends the Combat-Injured Veterans Tax Fairness Act of 2016 (P.L. 114-292)—which requires the Secretary of Defense to identify servicemembers separated for combat-related disabilities whose disability severance pay was improperly taxed, refund those taxes, and prevent future improper tax withholding—to extend those requirements to Coast Guard veterans when the Coast Guard is not operating as a service in the Department of the Navy (under the Secretary of Homeland Security) and during prior periods when it operated under the Department of Transportation (under the Secretary of Transportation). It directs the Secretaries of Homeland Security and Transportation to complete identification of affected veterans and related reporting under sections 3(a) and 5 of the 2016 Act within one year of enactment and the Secretary of Homeland Security to implement withholding prevention under section 4 of the 2016 Act beginning on the date of enactment.