Holiday Bonus Tax Relief Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6872 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6872 To amend the Internal Revenue Code of 1986 to exclude holiday bonuses from gross income, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 18, 2025 Mr. Mackenzie (for himself and Mr. Moskowitz) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude holiday bonuses from gross income, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Holiday Bonus Tax Relief Act of 2025''. SEC. 2. EXCLUSION FROM GROSS INCOME OF HOLIDAY BONUSES. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section: ``SEC. 139M. QUALIFIED HOLIDAY BONUSES. ``(a) In General.--Gross income shall not include any qualified holiday bonus. ``(b) Limitation.-- ``(1) In general.--The amount which may be excluded under subsection (a) with respect to any individual shall not exceed $2,500. ``(2) Inflation adjustment.--In the case of any taxable year beginning in a calendar year after 2026, the $2,500 amount in paragraph (1) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100. ``(c) Qualified Holiday Bonus.--