This bill proposes to amend the Internal Revenue Code of 1986 to exclude specific military benefits from federal income tax. Its primary purpose is to exempt retired or retainer pay for members or former members of the armed forces, as well as certain amounts received for disability, combat-related injury, or death of an armed forces member, from gross income. This aims to provide financial relief to military retirees and their beneficiaries. The legislation further addresses the tax treatment of reduced uniformed services retirement pay , specifically for those other than armed forces members, by excluding the amount of any reduction made under chapter 73 of title 10 (Survivor Benefit Plan). It includes a special rule for this exclusion, allowing amounts to be excluded until the "consideration for the contract" is met. Conforming amendments are also made, including the repeal of Section 1403 of title 10, and the changes will apply to taxable years beginning after the bill's enactment.