Bill Details
HR.823 - 119th Congress
Status
Latest action
2025-01-28 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-28
Policy Area
Taxation
Committees
View committees (1)
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would stop federal income tax from being charged on pay earned by active-duty servicemembers. In simple terms, the money that members of the Armed Forces make while serving on active duty would not count as taxable income under the federal tax code. The bill would apply to future income after a set start date, giving the government and taxpayers time before the change takes effect.
- It would add a new tax rule saying that income earned by an active-duty member of the Armed Forces is not included in gross income for federal tax purposes.
- The change would apply only to pay earned after the second October 1 that happens after the bill becomes law.
- The bill is meant to give servicemembers a full federal income tax exemption on their active-duty earnings.
- It would also make a technical update to the tax code’s table of sections to match the new rule.
Official Summaries
Heroes’ Tax Exemption Act of 2025
This bill excludes amounts earned by an active duty member of the Armed Forces from gross income for federal tax purposes.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 823 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 823
To amend the Internal Revenue Code of 1986 to exempt servicemembers
from the income tax.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2025
Mr. Van Drew 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 servicemembers
from the income 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 ``Heroes' Tax Exemption Act of 2025''.
SEC. 2. EXEMPTION FROM INCOME TAX FOR SERVICEMEMBERS.
(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. INCOME EARNED BY SERVICEMEMBERS.
``Gross income shall not include any amount earned by an active
duty member of the Armed Forces.''.
(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. Income earned by servicemembers.''.
(c) Effective Date.--The amendments made by this section shall
apply to income earned after the second October 1 occurring after date
of the enactment of this Act.
<all>