Sailors currently deployed aboard the aircraft carrier USS Nimitz (CVN 68) operating in the 5th Fleet area of operations may be noticing something different about their paychecks. They may also be hearing the buzz around the mess decks concerning a guaranteed way to make more cash.

These Sailors are noticing the benefits of operating in a tax-free zone and hearing about the Savings Deposit Program (SDP).

"The SDP is a program set up by the government to help service members in active duty combat zones and those supporting combat missions," said Chief Aviation Electronics Technician Michael Tagg, Nimitz' Command Financial Specialist from Gainesville, Florida. "It is intended to help them save some money and prepare for the future in addition to whatever programs they have set up for themselves."

Tax free exemption, much like SDP, is provided for Sailors and Marines who qualify due to the area they are operating in, or the mission they are supporting.

"There are a list of areas that are eligible and are current ones[that] qualify," said Tagg. "We are allowed to do it because we are directly supporting combat missions."

It only takes one day out of the month to qualify for tax free paychecks. Because Nimitz entered the Arabian Gulf during the month of July, Sailors became eligible and saw the results as of the July 31 paycheck. This exemption will continue until the ship and its crew leaves the current operating area.

To be eligible for the SDP, Sailors and Marines aboard must have been deployed in an eligible area for at least 30 consecutive days or at least one day in three consecutive months.

In order to sign up for the program, applicants will need to fill out allotment and check cashing forms with the disbursing office. These forms will be accepted starting Monday, August 7.

Deposits can be made by allotment, check or Navy cash card. Deposits may not be more than $10,000, or a service member's base pay plus entitlements for one month. Sailors and Marines are reminded to turn off the allotment once they depart the combat zone.

"[Disbursing] handles the actual deposits and ensures the money is deposited the day it is eligible, which is 30 days after we enter the area of operations," said Tagg. "For us it will be August 21. You can continue to make more deposits if you have the money to do so and haven't exceeded your limit. The money stays there and automatically starts collecting interest."

90 days after service members leave the combat zone they will return their money with all the accrued interest to whatever bank account that was provided.

"The only negative aspect is that whatever money you deposit is tied up in that investment and you can't touch it," said Tagg. "You can request a withdraw once we leave the zone using processes similar to any time you take out money early, but it will be a bit of a process and you will need a reason."

Despite being in a tax free zone, the interest you make off of your investment would still be taxable.

"The catch for sailors and marines on deployment is that this program is primarily for service members that are in combat areas for a full year or more," said Tagg. "This is the part that a lot of people get confused on and I get a lot of questions about."

The program is advertised as a guaranteed 10 percent back, but that is only an annual percentage rate.

"For us, we only get what percentage of a full year that we spend supporting combat missions," said Tagg. "With our current schedule we will be in theatre for around 4 months and we will continue to accrue interest for three months after we leave. The most we can get is 5-6 percent interest because we are not here for a full year."

Sailors and Marines can be deterred by not receiving the full 10 percent. The one thing Tagg stresses is that even if they only get 5 percent back, that is a guaranteed risk-free 5 percent over a relatively short amount of time.

"It's hard to find an investment like that anywhere else," said Hospital Corpsman 2nd Class Robert Viloria, a Nimitz Sailor from Milwaukee.

These pay benefits and exemptions will not affect the way Nimitz Sailors will have to do their taxes early next year.

"There will be no extra paperwork. It will all be automatically done by Defense Finance and Accounting Service (DFAS)," said Tagg. "Your W-2 will only reflect what money you made and not even distinguish the tax free money you made. You will file your taxes like normal."

Nimitz is deployed in the U.S. 5th Fleet area of operations in support of Operation Inherent Resolve. While in this region, the ship and strike group are conducting maritime security operations to reassure allies and partners, preserve freedom of navigation, and maintain the free flow of commerce.

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