This legislation aims to exclude regular compensation received by individuals for active service in the Armed Forces from their gross income, thereby exempting it from federal income taxes. This significant change would apply to taxable years beginning after December 31, 2024, providing a direct financial benefit to military personnel. However, the bill includes a specific exception: this tax exemption would not apply to any individual who has served as a Member of Congress at any point during the 10-year period preceding the receipt of such compensation. Furthermore, the Secretary of the Treasury would be required to modify withholding tables and procedures to reflect these new exclusions. To offset the potential loss in federal revenue, the bill mandates that the United States DOGE Service implement cost-saving initiatives equal to the revenue reduction caused by this tax relief.
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Timeline
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR H1553)
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR H1553)
Taxation
FIGHTER Act of 2025
USA119th CongressHR-2670| House
| Updated: 4/9/2025
This legislation aims to exclude regular compensation received by individuals for active service in the Armed Forces from their gross income, thereby exempting it from federal income taxes. This significant change would apply to taxable years beginning after December 31, 2024, providing a direct financial benefit to military personnel. However, the bill includes a specific exception: this tax exemption would not apply to any individual who has served as a Member of Congress at any point during the 10-year period preceding the receipt of such compensation. Furthermore, the Secretary of the Treasury would be required to modify withholding tables and procedures to reflect these new exclusions. To offset the potential loss in federal revenue, the bill mandates that the United States DOGE Service implement cost-saving initiatives equal to the revenue reduction caused by this tax relief.