US SB1108

Excludes all military retired pay and retainer pay under Title 10 and 14 of the U.S. Code from federal gross income for members and former members of the armed forces

Exempts disability compensation, pensions, annuities, and allowances paid under Titles 10, 14, 37, or 38 related to combat injuries, disabilities, or death from federal income tax

Provides partial exclusion for other uniformed services members (non-armed forces) for amounts reduced from retirement pay under the Survivor Benefit Plan (Chapter 73 of Title 10)

Repeals Section 1403 of Title 10, U.S. Code, as a conforming amendment to align military retirement tax treatment

Applies to taxable years beginning after the date of enactment