Tax Cuts for Veterans Act of 2025
- Bill Number
- H.R. 6190
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-11-20: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-17T08:05:29Z
AI-Generated Summary
Purpose This legislation aims to remove federal income taxes on military retirement pay and certain related benefits for members and former members of the U.S. Armed Forces.
Key Provisions
- The bill replaces the existing Section 122 of the Internal Revenue Code with a new rule that excludes from gross income:
- All retired or retainer pay paid under Title 10 or 14 of the U.S. Code.
- Monthly compensation, pensions, annuities, or allowances paid under Titles 10, 14, 37, or 38 for disability, combat-related injury, or death of a service member (excluding amounts already covered under Section 104(a)(4)).
- For other uniformed services (not the Armed Forces), it retains a limited exclusion for reduced retirement pay, allowing exclusion up to the amount of prior reductions or deposits made for the benefit contract.
- The bill repeals Section 1403 of Title 10 of the U.S. Code and makes related changes to Section 72(n) of the Internal Revenue Code.
- The changes apply to taxable years beginning after the date the law is enacted.
Significant Changes to Existing Law
- Current law taxes most military retirement pay as ordinary income. This bill creates a broad exclusion for all such pay and related disability benefits.
- It simplifies and expands the tax treatment by replacing prior rules with a single exclusion provision.
- It eliminates a specific Title 10 provision on military retirement pay taxation.
Potential Impacts
- On citizens: Military retirees and veterans would receive higher after-tax income from retirement benefits.
- On government agencies: The Internal Revenue Service would administer a new tax exclusion, and the federal government would forgo revenue from these benefits.
- On international relations: No direct effects are outlined in the bill.
Main Stakeholders Affected
- Current and former members of the Armed Forces and their survivors.
- The Department of Defense and other uniformed services that administer retirement pay.
- The Internal Revenue Service, which would implement the tax changes.
- Congress, as the body responsible for tax policy.
Notable Legal, Constitutional, or Political Implications
- The bill operates entirely within Congress's taxing power under the Constitution and does not appear to raise federalism or separation-of-powers issues.
- It represents a policy shift toward broader tax relief for military service without altering eligibility rules for benefits themselves.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Hamadeh, Abraham J. [R-AZ-8]
Cosponsors (7)
Rep. Moore, Barry [R-AL-1], Rep. Levin, Mike [D-CA-49], Rep. Massie, Thomas [R-KY-4], Del. King-Hinds, Kimberlyn [R-MP-At Large], Rep. Davis, Donald G. [D-NC-1], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Langworthy, Nicholas A. [R-NY-23]
Recent Actions
- 2025-11-20: Referred to the House Committee on Ways and Means.
- 2025-11-20: Introduced in House
- 2025-11-20: Introduced in House
Bill Versions
- Tax Cuts for Veterans Act of 2025 — issued 2025-11-20 — PDF (4 pages)