119 HR 9750 IH: Public Service Retirement Tax Relief Act of 2026 U.S. House of Representatives 2026-07-16 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.

I119th CONGRESS2d SessionH. R. 9750IN THE HOUSE OF REPRESENTATIVESJuly 16, 2026Mr. Lawler introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to establish a cap on income taxes on certain pensions.

1.

Short title

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

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.