This legislative proposal, known as the Service Members Tax Relief Act , seeks to provide financial relief to military personnel by amending the Internal Revenue Code of 1986. Its primary purpose is to exempt certain income earned by active or reserve members of the Uniformed Services of the United States from federal income taxation. Specifically, the bill introduces a new section to the Code, stipulating that gross income shall not include any compensation received by an individual for their service during the taxable year as an active or reserve member. It is important to note that this exclusion explicitly does not apply to pensions or retirement pay received by service members. The amendments made by this Act are slated to take effect for income earned in taxable years beginning after the date of its enactment , aiming to provide immediate tax benefits upon its implementation.