Bill · H.R. 2565· House(119-HR-2565)
No Tax on Bonuses Act of 2025
- Introduced
- 4/1/2025
- Last activity
- 4/1/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Brian Mast
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "No Tax on Bonuses Act of 2025," seeks to change the Internal Revenue Code of 1986. It aims to exclude specific bonuses from the gross income of members of the armed forces. These bonuses include enlistment, accession, reenlistment, retention, incentive, or other bonuses. The bonuses are paid by the Secretary concerned in exchange for service commitments or agreements. The changes would apply to taxable years beginning after the Act is enacted.
Yes
Does this cut taxes for middle-income families?+5
Military personnel receiving bonuses would see an increase in take-home pay due to the tax exclusion.
The opposite
Does this reduce what the federal government owes?-1
Tax exclusions reduce federal revenue, which could slightly increase the deficit.
Who it would affect, and how
Potential Positive Impacts for People
-
Exclusion of bonuses from gross income: This provision would ensure that certain payments received by service members are not treated as taxable income (Section 2).
-
Broad coverage of bonus types: The definition of a "qualified bonus" includes enlistment, accession, reenlistment, retention, incentive, or other bonuses (Section 2).
-
Incentives for service commitments: The bill applies to bonuses paid in exchange for agreements to accept a commission, extend active service, enlist, reenlist, or enter into reserve affiliation agreements (Section 2).
Potential Negative Impacts for People
- No negative impacts or burdens are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces National Debt-1
- 3/18/2026
- 1 Cosponsor added.
- 7/21/2025
- 1 Cosponsor added.
- 6/26/2025
- 1 Cosponsor added.
- 4/1/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
Abraham HamadehRepublican · Arizona
Kimberlyn King-HindsRepublican · Northern Mariana Islands
Jimmy PatronisRepublican · Florida