Service Members Tax Relief Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3246 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3246

To amend the Internal Revenue Code of 1986 to exempt certain income of 
              active or reserve service members from tax.


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                   IN THE SENATE OF THE UNITED STATES

                           November 20, 2025

 Mr. Ricketts introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 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 139L the following new section:

``SEC. 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.
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