This legislative proposal, designated as the Heroes' Tax Exemption Act of 2025 , seeks to amend the Internal Revenue Code of 1986. Its primary objective is to create a new exemption for active duty members of the Armed Forces from federal income taxation. Specifically, the bill introduces a new section, 139J, which stipulates that gross income shall not include any amount earned by an active duty member of the Armed Forces . This provision means that all income earned by these servicemembers would be entirely exempt from federal income tax. The proposed changes are set to become effective for income earned after the second October 1 occurring subsequent to the bill's enactment.