Exemption from income tax for uniformed service members

(a) In general Part III of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section: 139M. Certain income earned by uniformed service members (a) In general Gross income shall not include any compensation received by an individual in connection with such individual’s service during the taxable year as an active or reserve member of the Uniformed Services of the United States. (b) Exclusion of retirement income For purposes of this section, the term compensation does not include any pension or retirement pay.. (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139L the following new item: Sec. 139M. Certain income earned by uniformed service members.. (c) Effective date The amendments made by this section shall apply to income earned in taxable years beginning after the date of the enactment of this Act.