I 
119TH CONGRESS 
1ST SESSION H. R. 2565 
To amend the Internal Revenue Code of 1986 to exclude enlistment and 
reenlistment bonuses for members of the armed forces from gross income. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2025 
Mr. MAST 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 
enlistment and reenlistment bonuses for members of the 
armed forces from gross income. 
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 ‘‘No Tax on Bonuses 
Act of 2025’’. 
SEC. 2. EXCLUSION FROM GROSS INCOME OF ENLISTMENT 
AND REENLISTMENT BONUSES FOR MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 112 of the Internal Rev-
enue Code of 1986 is amended by redesignating sub-
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sections (c) and (d) as subsections (d) and (e), respec-
tively, and by inserting after subsection (b) the following 
new subsection: 
‘‘(c) QUALIFIED BONUS.—Gross income does not in-
clude a qualified bonus.’’. 
(b) QUALIFIED BONUS DEFINED.—Section 112(d) of 
such Code, as redesignated by subsection (a), is amended 
by adding at the end the following new paragraph: 
‘‘(6) QUALIFIED BONUS.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
bonus’ means an enlistment, accession, reenlist-
ment, retention, incentive, or other bonus paid 
by the Secretary concerned to a member of the 
Armed Forces of the United States in exchange 
for the agreement of the member to accept a 
commission as an officer, extend an active serv-
ice commitment as an officer, enlist, reenlist, or 
extend an enlistment as an enlisted member in 
an active or reserve component, or enter into a 
reserve affiliation agreement. 
‘‘(B) OTHER DEFINITIONS.—For purposes 
of subparagraph (A), the terms ‘active service’, 
‘enlisted member’, ‘officer’, and ‘Secretary con-
cerned’ have the meanings given to such terms 
in section 101 of title 10, United States Code.’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) Section 2201 of such Code is amended by 
striking ‘‘section 112(c)’’ both places it appears and 
inserting ‘‘section 112(d)’’. 
(2) The heading for section 112 of such Code 
is amended by inserting ‘‘AND
OTHER’’ before 
‘‘COMPENSATION’’. 
(3) Section 3401(a)(1) of such Code is amended 
by inserting ‘‘and other’’ before ‘‘compensation’’. 
(4) The table of sections for part III of sub-
chapter B of chapter 1 of such Code is amended by 
striking the item relating to section 112 and insert-
ing the following new item: 
‘‘Sec. 112. Certain combat zone and other compensation of members of the 
Armed Forces.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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