To amend the Internal Revenue Code of 1986 to exclude military bonuses from gross income.

This bill would change the federal tax treatment of military compensation by excluding certain bonuses from gross income for federal income tax purposes. Specifically, it amends the Internal Revenue Code to add to the existing exclusion (for qualified military benefits) the exclusion of any bonus paid to a member of the uniformed services under chapter 5 of title 37, U.S. Code. In practical terms, service members who receive eligible bonuses would not owe federal income tax on those bonus payments. The change would apply to tax years beginning after December 31, 2024 (i.e., starting in 2025). The bill was introduced in the House by Representative Kiggans (VA) and Representative Bishop and referred to the Committee on Ways and Means; it is not yet law.