House ends stalemate over military tax relief

The House Wednesday passed a Senate-approved bill granting tax relief to military families, ending a months-long stalemate between the two chambers in which the military provisions had become entangled in a dispute over expanding child tax credit benefits.

The House approved the bill after the Senate removed controversial offsets from the measure and replaced them with a short-term extension of customs user fees, passing the revised legislation on Monday.

The bill, which now awaits President Bush's signature, would double from $6,000 to $12,000 the death gratuity benefit for families of servicemen and women killed in action, and would exclude the entire amount from taxation.

The legislation also makes it easier for soldiers and foreign service officers stationed overseas to escape capital gains taxes on the sale of their residences, among other provisions.