Section 1. Short title
This Act may be cited as the No Tax on Drill Pay Act.
(a) In general
Section 134(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(7) Inactive-duty training compensation
The term qualified military benefit includes any compensation received in connection with inactive-duty training (as defined in section 101(d)(7) of title 10, United States Code, as in effect at the time of the receipt of such compensation).
(b) Conforming amendment
Section 134(b)(3)(A) of such Code is amended by striking paragraphs (4) and (5) and inserting paragraphs (4), (5), and (7).
(c) Effective date
The amendments made by this section shall apply to compensation received after the date of the enactment of this Act.