What is a Qualified hazardous duty area under OBBBA?

A qualified hazardous duty area is a location identified by federal law for specific military tax treatment during qualifying periods. Under OBBBA Section 70118, the definition includes the Sinai Peninsula of Egypt, Kenya, Mali, Burkina Faso, and Chad, but only during periods when any Armed Forces member is entitled to hostile-fire or imminent-danger special pay under 37 USC 310 in that location. OBBBA also makes the prior Sinai applicable-period limitation permanent. The amended rule applies to services performed on or after December 31, 2025, and advisors reviewing service members or spouses can use Individuals planning to coordinate location records, service dates, and the special pay condition before claiming the benefit.