1. Short title This Act may be cited as the Coast Guard Combat-Injured Tax Fairness Act . 2. Restoration of amounts improperly withheld for tax purposes from severance payments to veterans of the Coast Guard with combat-related injuries (a) Application to members of the Coast Guard when the Coast Guard is not operating as a service in the Department of the Navy The Combat-Injured Veterans Tax Fairness Act of 2016 ( Public Law 114–292 ; 10 U.S.C. 1212 note) is amended— (1) in section 3(a)— (A) in the matter preceding paragraph (1), by inserting (and the Secretary of Homeland Security, with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, and the Secretary of Transportation, with respect to the Coast Guard during the period in which it was operating as a service in the Department of Transportation) after the Secretary of Defense ; and (B) in paragraph (1)(A)— (i) in clause (i), by striking the Secretary and inserting the Secretary of Defense (or the Secretary of Homeland Security or the Secretary of Transportation, with respect to the Coast Guard, as applicable) ; (ii) in clause (ii), by striking the Secretary and inserting the Secretary of Defense (or the Secretary of Homeland Security or the Secretary of Transportation, with respect to the Coast Guard, as applicable) ; and (iii) in clause (iv), by striking the Secretary and inserting the Secretary of Defense (or the Secretary of Homeland Security or the Secretary of Transportation, with respect to the Coast Guard, as applicable) ; (2) in section 4— (A) in the section heading, by inserting and Secretary of Homeland Security after Secretary of Defense ; (B) by inserting (and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Department of the Navy) after The Secretary of Defense ; and (C) by striking made by the Secretary and inserting made by the Secretary of Defense (or the Secretary of Homeland Security with respect to the Coast Guard)