Section 1. Short title
This Act may be cited as the Service Members Tax Relief Act.
(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:
(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 pensions or retirement pay.
(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:
(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.