No Tax on Drill Pay Act

Bill Number

H.R. 7897

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-03-12: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-26T08:07:52Z

AI-Generated Summary

Purpose

The "No Tax on Drill Pay Act" (H.R. 7897) aims to provide tax relief to military reservists and National Guard members by excluding their pay for inactive-duty training—such as weekend drills—from federal income taxes.

Key Provisions

• Amendment to Tax Code: Adds inactive-duty training compensation to the list of "qualified military benefits" under Section 134(b) of the Internal Revenue Code (IRC), making it exempt from gross income.
• Definition: References the definition of "inactive-duty training" from U.S. military law (10 U.S.C. § 101(d)(7)), which covers training not involving active duty.
• Conforming Update: Adjusts existing language in the IRC to include the new exemption.
• Effective Date: Applies to compensation received after the bill's enactment.

Significant Changes to Existing Law

• Previously, certain military benefits (like active-duty pay) were tax-exempt under IRC Section 134, but inactive-duty training pay (drill pay) was taxable as regular income.
• This bill expands the exemption to include drill pay, closing a gap in tax treatment for part-time military service members.

Potential Impacts

• Citizens: Reservists and National Guard members gain tax savings on drill pay, potentially increasing take-home pay and encouraging service retention.
• Government Agencies: The IRS and Treasury Department will see reduced federal tax revenue (though likely minimal overall); no major administrative burdens added.
• No international relations impact.

Main Stakeholders Affected

• Primary: Members of the National Guard and military reserves who receive drill pay.
• Secondary: Their families (via increased disposable income) and the U.S. military (potential boost to recruitment/retention).
• Government: IRS (processes fewer taxable wages) and Congress (revenue effects).

Notable Legal, Constitutional, or Political Implications

• Legal: Simple, targeted tax code tweak with clear definitions; aligns reservist pay treatment with active-duty exemptions, reducing potential inequities.
• Constitutional: None apparent; falls under Congress's taxing and spending powers.
• Political: Supports military personnel amid recruitment challenges; bipartisan sponsorship signals broad appeal without controversy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Barr, Andy [R-KY-6]

Cosponsors (7)

Rep. Miller, Max L. [R-OH-7], Rep. Nunn, Zachary [R-IA-3], Rep. Ogles, Andrew [R-TN-5], Rep. Wied, Tony [R-WI-8], Rep. Messmer, Mark B. [R-IN-8], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Rogers, Harold [R-KY-5]

Recent Actions

• 2026-03-12: Referred to the House Committee on Ways and Means.
• 2026-03-12: Introduced in House
• 2026-03-12: Introduced in House

Bill Versions

• No Tax on Drill Pay Act — issued 2026-03-12 — PDF (2 pages)