1. Short title This Act may be cited as the School Resource Officer Compensation Act . 2. Exclusion of compensation of certain school resource officers (a) Employee compensation (1) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139J. Compensation of certain school resource officers (a) In general Gross income shall not include compensation received by a qualified school resource officer for service as such an officer. (b) Qualified school resource officer For purposes of this section, the term qualified school resource officer means a retired peace officer who is employed as an armed school resource officer at an elementary school or secondary school (as such terms are defined in section 8101 of the Elementary and Secondary Education Act of 1965). (c) Retired peace officer For purposes of this section, the term retired peace officer means an individual who is separated from service in good standing from service with a State or local agency as a law enforcement officer. . (2) Clerical amendment The table of sections for part III of subchapter B of chapter 1 is amended by inserting before the item relating to section 140 the following new item: Sec. 139J. Compensation of certain school resource officers. . (b) Payroll taxes Section 3121(a) of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (22)(B), by striking the period at the end of paragraph (23) and inserting