Introduced in House — H.R. 9750

119th CONGRESS

2d Session

H. R. 9750

IN THE HOUSE OF REPRESENTATIVES

July 16, 2026

Mr. Lawler introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to establish a cap on income taxes on certain pensions.

Section 1. Short title

This Act may be cited as the Public Service Retirement Tax Relief Act of 2026.

Sec. 2. Cap on income taxes on certain pensions

(a) In general

Section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(k) Special rule for individuals receiving certain pensions
(1) In general
The amount of tax imposed under this chapter may not exceed the sum of—
(A)
the non-pension tax amount, plus
(B)
$10,000 ($20,000 in the case of a qualified joint return).
(2) Non-pension tax amount
For purposes of this subsection, the term non-pension tax amount means the amount of tax imposed under this chapter, determined without regard to income received from a pension provided by a State or local government.
(3) Qualified joint return
For purposes of this subsection, the term qualified joint return means a return of tax filed jointly by spouses who each receive income from a pension provided by a State or local government.

(b) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.