American Indian Veterans Pay Restoration Act of 2004

This bill would require the federal government to reimburse Native American veterans for state income taxes that were incorrectly withheld from their military pay. Under federal law, service members who are legal residents of "Indian country" (such as reservations) are generally exempt from state income taxes on their military earnings while on active duty.

If enacted, the Secretary of the military department concerned would identify qualifying veterans and pay them an amount equal to the taxes withheld during their service. This measure aims to restore lost wages to tribal members who were taxed by states despite being legally exempt due to their domicile status.