H.R. 6190: Tax Cuts for Veterans Act of 2025

The proposed bill, known as the **Tax Cuts for Veterans Act of 2025**, aims to amend the Internal Revenue Code of 1986 to exempt certain military retirement and related benefits from federal income tax. Here are the key features of the bill:

1. Exclusion of Military Retirement Pay

The bill introduces a provision that states the gross income of members or former members of the Armed Forces will not include:

• Any retired or retainer pay received under titles 10 or 14 of the United States Code.
• Any compensation, pension, pay, annuity, or allowance for disabilities or combat-related injuries, as defined under titles 10, 14, 37, or 38 of the United States Code.

2. Reduced Uniformed Services Retirement Pay

For members of the uniformed services other than those in the Armed Forces, the following will apply:

• Their retirement pay reductions as per chapter 73 of title 10 shall also be excluded from gross income.
• This exclusion will continue until the total amounts excluded equal the initial consideration for the contract related to their retirement pay reductions, including any amounts deposited per other relevant sections.

3. Definitions

The bill clarifies definitions for the terms "armed forces" and "uniformed services," aligning them with meanings given in title 10 of the United States Code.

4. Conforming Amendments

To align with the new provisions, the bill proposes:

• Repeal of section 1403 of title 10, which pertains to certain regulations about retired pay.
• Amendments to clarify annuity provisions related to uniformed service members.

5. Effective Date

The changes made by the bill will take effect for taxable years beginning after its enactment.

Relevant Companies

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