Public Service Retirement Tax Relief Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9750 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9750

To amend the Internal Revenue Code of 1986 to establish a cap on income
                       taxes on certain pensions.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2026

  Mr. Lawler 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 establish a cap on income
                       taxes on certain pensions.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Service Retirement Tax Relief
Act of 2026''.

SEC. 2. CAP ON INCOME TAXES ON CERTAIN PENSIONS.

    (a) In General.--Section 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
    ``(k) Special Rule for Individuals Receiving Certain Pensions.--
            ``(1) In general.--The amount of tax imposed under this
        chapter may not exceed the sum of--
                    ``(A) the non-pension tax amount, plus
                    ``(B) $10,000 ($20,000 in the case of a qualified
                joint return).
            ``(2) Non-pension tax amount.--For purposes of this
        subsection, the term `non-pension tax amount' means the amount
        of tax imposed under this chapter, determined without regard to
        income received from a pension provided by a State or local
        government.
            ``(3) Qualified joint return.--For purposes of this
        subsection, the term `qualified joint return' means a return of
        tax filed jointly by spouses who each receive income from a
        pension provided by a State or local government.''.
    (b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
                                 <all>