Service Members Tax Relief Act

This bill exempts active and reserve uniformed service members' active-duty pay from federal income tax. It directly affects military personnel serving in the U.S. Armed Forces, including the Army, Navy, Air Force, Marines, and Coast Guard. The key provision adds a new tax code section (139M) excluding "compensation received in connection with service" from taxable income, but explicitly excludes retirement pay from this exemption. The change applies to income earned in tax years starting after the bill's enactment date.