No Tax on Drill Pay Act
To amend the Internal Revenue Code of 1986 to exclude from gross income compensation received in connection with inactive-duty training.
The proposed bill, HB7897, aims to change the tax rules for military personnel. Specifically, it seeks to amend the Internal Revenue Code so that compensation earned during inactive-duty training is not considered taxable income. This means that military members who participate in these training sessions would not have to pay taxes on the pay they receive for these activities.
This bill would affect service members who participate in inactive-duty training, potentially saving them money on their taxes. By excluding this income from taxable earnings, the bill could help ease the financial burden on those who train while not fully active in their military roles.
HB7897 was introduced on March 12, 2026, and has been referred to the House Committee on Ways and Means. This committee will review the bill, hold hearings, and decide whether to move it forward for a vote by the full House. If passed by the House, it would then proceed to the Senate for further consideration.
