To amend the Internal Revenue Code of 1986 to exempt certain income of active or reserve service members from tax.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
Excludes active-duty and reserve compensation from federal gross income, except pension and retirement pay, for taxable years beginning after enactment.
Who Benefits and How
Active-duty and reserve service members could see lower federal income-tax liability on their service compensation.
Who Bears the Burden and How
Federal revenues would decline, and tax administrators would need to implement a new exclusion for military compensation.
Key Provisions
- Creates a new Internal Revenue Code exclusion for compensation received in active or reserve uniformed service.
- Excludes pension and retirement pay from the new tax benefit.
- Applies the exclusion to taxable years beginning after enactment.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Excludes active-duty and reserve compensation from federal gross income, except pension and retirement pay, for taxable years beginning after enactment.
Key Policy Areas
Finance, Defense
Primary Purpose
Excludes active-duty and reserve compensation from federal gross income, except pension and retirement pay, for taxable years beginning after enactment.
Policy Domains
Main Provisions
Identified Gains
Contextual inference, no direct clause citation- Active-duty and reserve service members
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers and revenue administrators absorbing the lost revenue
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Ricketts introduced the following bill; which was read twice …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Active-duty and reserve service members receiving qualifying compensation
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology