26 U.S.C. § 134 — Certain military benefits

(a) General rule. A person's gross income does not include any "qualified military benefit." (b) Qualified military benefit. (1) In general: a "qualified military benefit" is any allowance or in-kind (non-cash) benefit — other than personal use of a vehicle — that a current or former member of the U.S. uniformed services, or their dependent, receives because of that member's status or service, and that could be excluded from gross income on September 9, 1986, under whatever law, regulation, or practice applied on that date, other than this title itself. (2) No other benefit counts: nothing is treated as a qualified military benefit unless it fits paragraph (1), or unless it can be excluded from gross income under this title without relying on any outside law that is not part of this title or a revenue act. (3) Limits on later changes: generally, any modification or adjustment made to a qualified military benefit after September 9, 1986 does not count — meaning it is ignored for this exclusion — except as the next two rules and paragraphs (4) and (5) allow. This general limit does not apply to an adjustment of a cash benefit that follows a law or regulation already in effect on September 9, 1986, and that is tied to changes in cost, price, currency, or a similar index. It also does not apply to a change in the death gratuity amount under chapter 75 of title 10, made by a law passed after September 9, 1986. (4) Clarifying certain benefits: the term also includes any dependent care assistance program, as it existed when this paragraph was enacted, for the people described in paragraph (1)(A). (5) Hero Miles travel benefits: the term includes a travel benefit provided under section 2613 of title 10, as that section existed when this paragraph was enacted. (6) Certain state payments: the term includes a bonus payment that a state or local government gives to a service member, or a member's dependent, only because that member served in a combat zone, as this title defines that term elsewhere.