Bill > HR2565

This bill proposes to amend the Internal Revenue Code to exclude certain military bonuses from being counted as taxable gross income. Specifically, the legislation would create a new category called "qualified bonus" which includes enlistment, reenlistment, retention, and other financial incentives paid to members of the Armed Forces. These bonuses would be exempt from federal income tax when received by service members in exchange for agreeing to extend their service commitment, enlist or reenlist in active or reserve components, or enter into a reserve affiliation agreement. The bill defines key terms by referencing existing definitions in title 10 of the United States Code, which covers military personnel. The tax exemption would apply to taxable years beginning after the date of the bill's enactment, effectively providing financial relief to military personnel by allowing them to keep the full amount of their service-related bonuses without tax deductions. This legislation aims to provide additional financial support and incentive for military recruitment and retention by making these bonuses more financially attractive.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2565/all-info