37 U.S.C. § 325 — Incentive bonus: savings plan for education expenses and other contingencies

(a) Benefit and Eligibility. The Secretary concerned^* can buy U.S. savings bonds for a member^* who commits to "qualifying service," in three situations: (1) before finishing three years of active duty^*; (2) after three years but no more than nine years of active duty; or (3) after nine years of active duty.
(b) Qualifying Service. "Qualifying service" means active duty in a specialty the Secretary concerned designates as critical, whether for wartime or peacetime needs, for a period that: (1) is at least six years; and (2) does not include any time the member already owes under an earlier enlistment or agreement that already earned a benefit under this section.
(c) Forms of Commitment to Additional Service. A "commitment" means: (1) for an enlisted member^*, reenlisting; and (2) for a commissioned officer^*, signing an agreement with the Secretary concerned.
(d) Amounts of Bonds. The total face value of bonds bought for a member's commitment is: (1) $5,000, for a commitment under (a)(1); (2) for a commitment under (a)(2), $15,000 minus the face value of any bonds already bought for that member under this section; (3) for a commitment under (a)(3), $30,000 minus the face value of any bonds already bought for that member under this section.
(e) Total Amount of Benefit. The full benefit for a commitment equals: (1) the bonds' purchase price; plus (2) the amount that would have been withheld for income tax if that total had instead been paid to the member as a cash bonus.
(f) Amount Withheld for Taxes. The tax amount from (e)(2) is withheld, credited, and handled the same way as tax withheld from the member's regular basic pay^*.
(g) Repayment. If a member does not finish the qualifying service they promised under a commitment that already earned a benefit, they must repay it under section 303a(e).
(h) Relationship to Other Special Pays. This benefit comes on top of any other bonus, incentive, or special pay the member gets under any other part of this chapter for the same period of qualifying service.
(i) Regulations. The Secretary of Defense writes the rules for the armed forces^* under Defense Department jurisdiction. The Secretary of Homeland Security writes the rules for the Coast Guard, when it is not operating as part of the Navy.