Remotely Piloted Aircraft Crews Tax Relief Act

Summary

Changes wording in the federal tax code that governs exclusion of certain military pay from taxable income. The amendment inserts the phrase "such term" into both the enlisted and commissioned-officer subsections of 26 U.S.C. §112, and it applies to compensation for taxable years ending after enactment and to periods of active service after enactment. The textual change is narrow but potentially substantive: depending on what "such term" refers to, it could alter who qualifies for the exclusion or how the exclusion is read, affecting taxation of some military compensation and requiring implementation guidance from payroll offices and the IRS.

• Establishes the Act's short title but contains only one substantive amendment to the tax code.
• Inserts the phrase "such term" into both subsections (a) and (b) of 26 U.S.C. §112, altering the statutory text governing exclusion of certain military pay.
• Applies to compensation for taxable years ending after enactment and to periods of active service after enactment.
• May change which military compensation qualifies for exclusion depending on the referent of "such term."
• Does not authorize spending or appropriate funds; it modifies tax law wording only.
• Will likely require IRS and Defense payroll guidance to implement and could affect withholding and tax returns for affected service members.
• Narrow in scope but potentially substantive; ambiguity could prompt administrative clarification or litigation.
• Targets military compensation provisions—direct effect on service members' tax treatment, especially those in roles referenced by the Act's title.