What does Preamble of No Tax on Bonuses Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would exclude enlistment and reenlistment bonuses for members of the armed forces from gross income.

What does SHORT TITLE. of No Tax on Bonuses Act of 2025 do?

This bill is formally titled the 'No Tax on Bonuses Act of 2025'.

What does EXCLUSION FROM GROSS INCOME OF ENLISTMENT AND REENLISTMENT of No Tax on Bonuses Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to exclude qualified bonuses from gross income. A 'qualified bonus' is defined as an enlistment, accession, reenlistment, retention, incentive, or other bonus paid to members of the Armed Forces in exchange for service commitments. The definition of 'qualified bonus' incorporates terms like 'active service,' 'enlisted member,' 'officer,' and 'Secretary concerned' as defined in Title 10, United States Code. Several sections of the Internal Revenue Code are amended to reflect these changes, including redesignating subsections and updating table of sections. The amendments apply to taxable years beginning after the date of enactment of this Act.

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No Tax on Bonuses Act of 2025

Last updated: 4/1/2025 · Introduced: 4/1/2025

Author: Brian Mast (R-FL)

TL;DR (AI)

This bill excludes enlistment and reenlistment bonuses for members of the armed forces from federal gross income.
A 'qualified bonus' is defined as payments made to service members in exchange for service commitments, incorporating existing definitions from Title 10, United States Code.
The changes apply to taxable years beginning after the bill's enactment.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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