H.R. 6970House119th Congress (2025-2027)In Committee

To amend the Internal Revenue Code of 1986 to exclude from gross income the earnings from certain overseas deployments of members of the Armed Forces.

AI-Generated Summary

Updated January 21, 2026 at 11:22 AM UTC

The bill changes the tax code so that pay earned by members of the Armed Forces while serving overseas is not counted as taxable income. It adds overseas deployments to the existing combat‑zone income exclusion for both enlisted personnel and commissioned officers. The change applies to tax years beginning after December 31, 2025, and affects service members who are deployed abroad, but not those who are overseas because of a permanent change of station.

Key Provisions

Amends IRC §112 to add a new category—“served overseas”—so earnings from overseas deployments are excluded from gross income for both enlisted personnel and commissioned officers.
Defines “overseas” as any area outside the United States and clarifies that “served overseas” does not include time spent abroad under permanent change of station orders.
Updates the heading of §112 and the code’s table of sections to reflect the added “and overseas” language.
Sets the effective date for these changes to taxable years beginning after December 31, 2025.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 7, 2026

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HouseIntro Referral

Introduced in House

January 7, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 7, 2026

Bill Text

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Introduced in HouseIssued January 7, 2026

119th CONGRESS

2d Session

H. R. 6970

IN THE HOUSE OF REPRESENTATIVES

January 7, 2026

Mr. Rogers of Alabama introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to exclude from gross income the earnings from certain overseas deployments of members of the Armed Forces.

Combat zone exclusion expanded to include certain overseas deployments

(a)

Enlisted personnel

Section 112(a) of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , or, and by inserting after paragraph (2) the following new paragraph:

(3)

served overseas.

(b)

Commissioned officers

Section 112(b) of such Code is amended by striking or at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , or, and by inserting after paragraph (2) the following new paragraph:

(3)

served overseas.

(c)

Definitions added

Section 112(c) of such Code is amended by adding at the end the following new paragraphs:

(6)

The term overseas means any area outside the United States.

(7)

The term served overseas does not include service during any month or portion thereof during which the taxpayer is overseas pursuant to permanent change of station orders.

(8)

The term United States includes the territories and possessions of the United States.

(d)

Conforming amendments

(1)

The heading of section 112 of such Code is amended by inserting and overseas after combat zone.

(2)

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 112 and inserting the following:

Sec. 112. Certain combat zone and overseas compensation of members of the Armed Forces.

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.