I 

118TH CONGRESS 

2D SESSION H. R. 9800 

To amend the Internal Revenue Code of 1986 to establish a deduction 

for certain amounts received as a bonus. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 25, 2024 

Mr. BACON 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 establish 

a deduction for certain amounts received as a bonus. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Working Class Bonus 

5 Tax Relief Act of 2024’’. 

6 SEC. 2. DEDUCTION FOR BONUSES. 

7 (a) IN GENERAL.— 

8 (1) DEDUCTION ALLOWED.—Part VII of sub9 chapter B of chapter 1 of the Internal Revenue Code 

10 of 1986 is amended by redesignating section 224 as 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 9800 IH

1 section 225 and by inserting after section 223 the 

2 following new section: 

3 ‘‘SEC. 224. BONUSES. 

4 ‘‘(a) IN GENERAL.—There shall be allowed as a de5 duction an amount equal to so much of any bonus received 

6 by an individual as does not exceed 15 percent of such 

7 individual’s non-bonus wages from the same employer for 

8 the taxable year. 

9 ‘‘(b) LIMITATION.—No deduction shall be allowed 

10 under subsection (a) for any taxpayer whose adjusted 

11 gross income for the taxable year exceeds— 

12 ‘‘(1) in the case of a married couple filing joint13 ly, $200,000, 

14 ‘‘(2) in the case of a head of household, 

15 $150,000, or 

16 ‘‘(3) in the case of any other individual, 

17 $100,000. 

18 ‘‘(c) TERMINATION.—No deduction shall be allowed 

19 under subsection (a) for any amounts received after De20 cember 31, 2029.’’. 

21 (2) CONFORMING AMENDMENT.—The table of 

22 sections for part VII of subchapter B of chapter 1 

23 of such Code is amended by redesignating the item 

24 relating to section 224 as relating to section 225 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 9800 IH

1 and by inserting after the item relating to section 

2 223 the following new item: 

‘‘Sec. 224. Bonuses.’’. 

3 (b) DEDUCTION ALLOWED TO NON-ITEMIZERS.— 

4 Section 63(b) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘and’’ at the end of paragraph (3), 

6 by striking the period at the end of paragraph (4) and 

7 inserting ‘‘and’’, and by adding at the end the following 

8 new paragraph: 

9 ‘‘(5) the deduction provided in section 224.’’. 

10 (c) NON-APPLICATION OF CERTAIN LIMITATIONS

11 FOR ITEMIZERS.— 

12 (1) DEDUCTION NOT TREATED AS A MISCELLA13 NEOUS ITEMIZED DEDUCTION.—Section 67(b) of the 

14 Internal Revenue Code of 1986 is amended by strik15 ing ‘‘and’’ at the end of paragraph (11), by striking 

16 the period at the end of paragraph (12) and insert17 ing ‘‘, and’’, and by adding at the end the following 

18 new paragraph: 

19 ‘‘(13) the deduction under section 224 (relating 

20 to bonuses).’’. 

21 (2) DEDUCTION NOT TAKEN INTO ACCOUNT

22 UNDER OVERALL LIMITATION.—Section 68(c) of the 

23 Internal Revenue Code of 1986 is amended by strik24 ing ‘‘and’’ at the end of paragraph (2), by striking 

25 the period at the end of paragraph (3) and inserting 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•HR 9800 IH

1 ‘‘, and’’, and by adding at the end the following new 

2 paragraph: 

3 ‘‘(4) the deduction under section 224 (relating 

4 to bonuses).’’. 

5 (d) WITHHOLDING.—The Secretary of the Treasury 

6 (or the Secretary’s delegate) shall modify the tables and 

7 procedures prescribed under section 3402(a) of the Inter8 nal Revenue Code of 1986 to take into account the deduc9 tion allowed under section 224 of such Code (as added 

10 by this Act). 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to amounts received after the date 

13 of the enactment of this Act. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS