The House wants to give members of the military more tax benefits. And members overwhelmingly passed a bill that would do so.
The breaks are also extended to other public servants such as volunteer firefighters.
The legislation makes permanent a current law that designates military combat pay as eligible for the Earned Income Tax Credit. The credit refunds payroll and income taxes to low-income people. It also makes permanent IRS provisions to allow active-duty reservists to make penalty-free withdrawals from retirement plans.
Thousands of veterans would be eligible for low-interest loans to become homeowners.
The bill now goes to the Senate for consideration.
The House also passed a bill to guarantee military veterans who are discharged due to combat injuries their full enlistment or re-enlistment bonuses.