This bill amends the Internal Revenue Code of 1986 to establish a new exclusion from gross income for certain payments received by individuals. It specifies that any payment an individual receives from a State sovereign wealth fund will not be considered taxable income. The legislation defines a State sovereign wealth fund as a permanent fund created and maintained by a State exclusively for the benefit of its residents. These funds must receive designated State revenue, invest their principal as prescribed by State law, and distribute periodic payments to individuals primarily based on residency, not in exchange for consideration. This tax exclusion will be applicable to all such payments received after the bill's enactment.