119 S3246 IS: Service Members Tax Relief Act U.S. Senate 2025-11-20 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II119th CONGRESS1st SessionS. 3246IN THE SENATE OF THE UNITED STATESNovember 20, 2025Mr. Ricketts introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to exempt certain income of active or reserve service members from tax.

1.

Short title

This Act may be cited as the Service Members Tax Relief Act.

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 139L the following new section:

139M.

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 any pension or retirement pay.

.(b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139L the following new item:Sec. 139M. 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.