Bill Summary
The "Service Members Tax Relief Act" is a proposed legislation aimed at amending the Internal Revenue Code of 1986 to provide tax relief to active and reserve members of the Uniformed Services of the United States. Specifically, the bill seeks to exempt certain income earned by these service members from federal income tax.
Key provisions include the following:
1. **Tax Exemption**: The bill establishes that gross income will not include compensation received for service as an active or reserve member of the Uniformed Services during the taxable year.
2. **Retirement Income Exclusion**: It clarifies that this exemption does not apply to pensions or retirement pay, meaning that only current service-related income would qualify for the tax exemption.
3. **Effective Date**: The amendments would apply to income earned in taxable years beginning after the enactment of the Act.
Overall, the legislation aims to provide financial relief to service members by reducing their taxable income, thereby supporting those who serve in the military.
Possible Impacts
The "Service Members Tax Relief Act," as described in the provided legislation, could affect people in the following ways:
1. **Increased Disposable Income for Active and Reserve Service Members**: By exempting certain income earned by active or reserve service members from federal income tax, the legislation would increase the net income these individuals take home. This extra disposable income could be utilized for essential expenses, savings, or investments, thereby improving their financial well-being.
2. **Encouragement for Enlistment and Retention**: The tax exemption may serve as an incentive for individuals to join the military or continue their service. Knowing that their earned income is tax-exempt could make military careers more attractive, which may help maintain adequate troop levels and ensure that the military can effectively fulfill its mission.
3. **Simplification of Tax Filing for Service Members**: The legislation could reduce the complexity of tax filing for active and reserve service members. Since a portion of their income would not be subject to taxation, service members may find it easier to file their taxes, potentially leading to fewer errors and a more straightforward filing process. This could also alleviate stress during tax season, allowing service members to focus more on their duties rather than financial concerns.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6189 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6189
To amend the Internal Revenue Code of 1986 to exempt certain income of
active or reserve service members from tax.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
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
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exempt certain income of
active or reserve service members from tax.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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:
``SEC. 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 `compensation' does 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:
``Sec. 139J. Certain income earned by uniformed service members.''.
(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.
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