Bill > HR6970

This bill, titled "To amend the Internal Revenue Code of 1986 to exclude from gross income the earnings from certain overseas deployments of members of the Armed Forces," proposes to expand tax exemptions for military personnel. Specifically, it amends Section 112 of the Internal Revenue Code, which currently allows for the exclusion of certain income earned in combat zones. The bill adds a new provision that allows both enlisted personnel and commissioned officers to exclude income earned when they "served overseas," defining "overseas" as any area outside the United States, including its territories and possessions. However, this exclusion will not apply to service during any month or part of a month where the service is due to permanent change of station orders. These changes, which also update the heading and table of contents for Section 112 to reflect the inclusion of "overseas" compensation, are set to take effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6970/all-info