November 20, 2025
Mr. Hamadeh of Arizona (for himself, Mr. Moore of Alabama, and Mr. Massie) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to exempt certain income of active or reserve service members from tax.
Section 1. Short title
This Act may be cited as the Service Members Tax Relief Act
.
Sec. 2. Exemption from income tax for uniformed service members
(a) In general
Part III of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
139J. Certain income earned by uniformed service members
(a) In general
Gross income shall not include any compensation received by an individual in connection with such individual’s service during the taxable year as an active or reserve member of the Uniformed Services of the United States.
(b) Exclusion of retirement income
For purposes of this section, the term
compensationdoes not include pensions or retirement pay.
(b) Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of subtitle A of such Code is amended by inserting after the item relating to section 139I the following new item:
(c) Effective date
The amendments made by this section shall apply to income earned in taxable years beginning after the date of the enactment of this Act.