H.R. 6970 — 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.

This section expands the exclusion from gross income for compensation received by members of the Armed Forces—currently available for service in a combat zone (all pay for enlisted personnel; up to highest enlisted pay rate for commissioned officers)—to also include pay received for service overseas (i.e., any area outside the United States, including its territories and possessions, excluding any month or portion thereof pursuant to permanent change of station orders). The amendments apply to taxable years beginning after December 31, 2025.