I 
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 Representa-
tives 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 BO-
NUSES. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139L the following new section: 
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‘‘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 in-
dividual 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 deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2025’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$100. 
‘‘(c) QUALIFIED HOLIDAY BONUS.—For purposes of 
this section, the term ‘qualified holiday bonus’ means, with 
respect to a taxable year, any holiday, end-of-year, or simi-
lar bonus that is paid by an employer to an employee dur-
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ing the month of January, November, or December of 
such taxable year. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to prevent reclassification of income as a qualified holiday 
bonus, including regulations or other guidance to prevent 
abuse of the exclusion allowed by this section.’’. 
(b) QUALIFIED HOLIDAY BONUSES REQUIRED TO 
BE SHOWN ON W–2.—Section 6051(a) of such Code is 
amended by striking ‘‘and’’ at the end of paragraph (18), 
by striking the period at the end of paragraph (19) and 
inserting ‘‘, and’’, and by inserting after paragraph (19) 
the following new paragraph: 
‘‘(20) the total amount of qualified holiday bo-
nuses (as defined in section 139M(c)).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139L the following new item: 
‘‘Sec. 139M. Qualified holiday bonuses.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonuses received on or after No-
vember 1, 2025, in taxable years ending after such date. 
Æ 
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