1. Short title This Act may be cited as the Disabled Veterans Tax Termination Act . 2. Concurrent receipt of both retired pay and veterans’ disability compensation for military retirees with compensable service-connected disabilities (a) Inclusion of Retirees With Service-Connected Disabilities Rated Less Than 50 Percent Section 1414(a) of title 10, United States Code, is amended— (1) by striking Compensation in the subsection heading and all that follows through Subject and inserting Compensation .—Subject ; (2) by striking qualifying service-connected disability and inserting service-connected disability ; and (3) by striking paragraph (2). (b) Inclusion of disability retirees with less than 20 years of service Section 1414(b) of title 10, United States Code, is amended— (1) in paragraph (1), by striking member retired and inserting qualified retiree who is retired ; and (2) by striking paragraph (2) and inserting the following new paragraph: (2) Disability retirees with less than 20 years of service The retired pay of a qualified retiree who is retired under chapter 61 of this title with fewer than 20 years of creditable service is subject to reduction under sections 5304 and 5305 of title 38, but only by the amount (if any) by which the amount of the member’s retired pay under such chapter exceeds the amount equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member. . (c) Conforming amendments reflecting end of Concurrent Receipt phase-In period Section 1414 of title 10, United States Code, is further amended— (1) in subsection (a), as amended by subsection (a) of this section, by striking the final sentence; (2) by striking subsection (c) and redesignating subsections (d) and (e) as subsections (c) and (d), respectively