Us Congress 2025-2026 Regular Session

Us Congress House Bill HB557 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 557
5	5	To amend the Internal Revenue Code of 1986 to establish a deduction
6	6	for certain amounts received as a bonus.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY20, 2025
9	9	Mr. B
10	10	ACONintroduced the following bill; which was referred to the Committee
11	11	on Ways and Means
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to establish
14	14	a deduction for certain amounts received as a bonus.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘Working Class Bonus 4
19	19	Tax Relief Act of 2025’’. 5
20	20	SEC. 2. DEDUCTION FOR BONUSES. 6
21	21	(a) I
22	22	NGENERAL.— 7
23	23	(1) D
24	24	EDUCTION ALLOWED .—Part VII of sub-8
25	25	chapter B of chapter 1 of the Internal Revenue Code 9
26	26	of 1986 is amended by redesignating section 224 as 10
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29	29	•HR 557 IH
30	30	section 225 and by inserting after section 223 the 1
31	31	following new section: 2
32	32	‘‘SEC. 224. BONUSES. 3
33	33	‘‘(a) I
34	34	NGENERAL.—There shall be allowed as a de-4
35	35	duction an amount equal to so much of any bonus received 5
36	36	by an individual as does not exceed 15 percent of such 6
37	37	individual’s non-bonus wages from the same employer for 7
38	38	the taxable year. 8
39	39	‘‘(b) L
40	40	IMITATION.—No deduction shall be allowed 9
41	41	under subsection (a) for any taxpayer whose adjusted 10
42	42	gross income for the taxable year exceeds— 11
43	43	‘‘(1) in the case of a married couple filing joint-12
44	44	ly, $200,000, 13
45	45	‘‘(2) in the case of a head of household, 14
46	46	$150,000, or 15
47	47	‘‘(3) in the case of any other individual, 16
48	48	$100,000. 17
49	49	‘‘(c) T
50	50	ERMINATION.—No deduction shall be allowed 18
51	51	under subsection (a) for any amounts received after De-19
52	52	cember 31, 2029.’’. 20
53	53	(2) C
54	54	ONFORMING AMENDMENT .—The table of 21
55	55	sections for part VII of subchapter B of chapter 1 22
56	56	of such Code is amended by redesignating the item 23
57	57	relating to section 224 as relating to section 225 24
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60	60	•HR 557 IH
61	61	and by inserting after the item relating to section 1
62	62	223 the following new item: 2
63	63	‘‘Sec. 224. Bonuses.’’.
64	64	(b) DEDUCTIONALLOWED TO NON-ITEMIZERS.— 3
65	65	Section 63(b) of the Internal Revenue Code of 1986 is 4
66	66	amended by striking ‘‘and’’ at the end of paragraph (3), 5
67	67	by striking the period at the end of paragraph (4) and 6
68	68	inserting ‘‘and’’, and by adding at the end the following 7
69	69	new paragraph: 8
70	70	‘‘(5) the deduction provided in section 224.’’. 9
71	71	(c) N
72	72	ON-APPLICATION OF CERTAINLIMITATIONS 10
73	73	FORITEMIZERS.— 11
74	74	(1) D
75	75	EDUCTION NOT TREATED AS A MISCELLA -12
76	76	NEOUS ITEMIZED DEDUCTION .—Section 67(b) of the 13
77	77	Internal Revenue Code of 1986 is amended by strik-14
78	78	ing ‘‘and’’ at the end of paragraph (11), by striking 15
79	79	the period at the end of paragraph (12) and insert-16
80	80	ing ‘‘, and’’, and by adding at the end the following 17
81	81	new paragraph: 18
82	82	‘‘(13) the deduction under section 224 (relating 19
83	83	to bonuses).’’. 20
84	84	(2) D
85	85	EDUCTION NOT TAKEN INTO ACCOUNT 21
86	86	UNDER OVERALL LIMITATION .—Section 68(c) of the 22
87	87	Internal Revenue Code of 1986 is amended by strik-23
88	88	ing ‘‘and’’ at the end of paragraph (2), by striking 24
89	89	the period at the end of paragraph (3) and inserting 25
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92	92	•HR 557 IH
93	93	‘‘, and’’, and by adding at the end the following new 1
94	94	paragraph: 2
95	95	‘‘(4) the deduction under section 224 (relating 3
96	96	to bonuses).’’. 4
97	97	(d) W
98	98	ITHHOLDING.—The Secretary of the Treasury 5
99	99	(or the Secretary’s delegate) shall modify the tables and 6
100	100	procedures prescribed under section 3402(a) of the Inter-7
101	101	nal Revenue Code of 1986 to take into account the deduc-8
102	102	tion allowed under section 224 of such Code (as added 9
103	103	by this Act). 10
104	104	(e) E
105	105	FFECTIVEDATE.—The amendments made by 11
106	106	this section shall apply to amounts received after the date 12
107	107	of the enactment of this Act. 13
108	108	Æ
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