PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Horsford, Steven [D-NV-4] · D–NV
Legislative record
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Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 14, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-13 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The bill would require employers to pay tipped employees the regular federal minimum wage, with tips retained by workers except for permitted tip pooling. It would also let eligible workers deduct qualifying reported tips when calculating federal taxable income, including workers who do not itemize deductions. People with adjusted gross income above $112,500 would be ineligible for the deduction. The tax changes would apply to tax years beginning after December 31, 2025.
The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). All tips received by such employee shall be retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.
There shall be allowed as a deduction an amount equal to the amount of qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).
No deduction shall be allowed under subsection (a) to any individual for any taxable year if the adjusted gross income of such individual for such taxable year exceeds $112,500.
(b) Deduction allowed to non-Itemizers
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Section 1 would name the bill the Tipped Income Protection and Support Act, or TIPS Act.
This Act may be cited as the Tipped Income Protection and Support Act or TIPS Act.
Section 2 would replace the separate tipped-worker wage provision with a requirement to pay the wage specified in section 6(a)(1) of the Fair Labor Standards Act. Workers would retain their tips, but pooling tips among employees who customarily and regularly receive them would remain permitted.
Section 3(m)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) is amended to read as follows: (A) The wage required to be paid to a tipped employee shall be the wage set forth in section 6(a)(1). All tips received by such employee shall be retained by the employee, except that this subsection shall not be construed to prohibit the pooling of tips among employees who customarily and regularly receive tips.
Section 2 would change two enforcement provisions to refer to all tips unlawfully used or kept by an employer. It would remove language that also counts a tip credit—the amount an employer counts toward its wage obligation from workers’ tips. The surrounding enforcement provisions are not reproduced.
(1) in subsection (b), by striking the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer and inserting the sum of all such tips unlawfully used or kept by the employer; and (2) in subsection (c), by striking the sum of any tip credit taken by the employer and all such tips unlawfully kept by the employer and inserting the sum of all such tips unlawfully used or kept by the employer.
Section 3 would create a deduction equal to qualifying tips received during the tax year and included on tip statements furnished to the employer under section 6053(a). This would reduce income subject to tax; it would not provide a payment equal to the tips.
There shall be allowed as a deduction an amount equal to the amount of qualified tips received during the taxable year that are included on statements furnished to the employer pursuant to section 6053(a).
An individual whose adjusted gross income—a tax measure of income after certain adjustments—exceeds $112,500 would receive no tip deduction for that tax year. The provision uses a cutoff rather than a gradual reduction.
No deduction shall be allowed under subsection (a) to any individual for any taxable year if the adjusted gross income of such individual for such taxable year exceeds $112,500.
Qualifying tips would have to come from an unrelated party and be received by a worker without an ownership stake in the business employing them in the tipped job. The job would have to be in an occupation that traditionally and customarily receives tips. The listed examples include cosmetology, hospitality, food and beverage service, parking attendants, and custodial service.
the term qualified tips means a tip received by an individual— (1) from an unrelated party, (2) who does not have an ownership stake in the business which employs them in the job in for which such individual is receiving a tip, and (3) in the course of such individual’s employment in an occupation which traditionally and customarily received tips, including— (A) cosmetology, (B) hospitality, (C) food and beverage service, (D) parking attendants, and (E) custodial service.
Workers could claim the deduction even if they use the standard deduction instead of listing individual deductions.
(b) Deduction allowed to non-Itemizers Section 63(b) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting and, and by adding at the end the following new paragraph: (5) the deduction provided in section 224.
For workers who itemize deductions, the tip deduction would be excluded from the miscellaneous itemized deduction category and from the overall limitation on itemized deductions. The bill does not reproduce the existing rules governing those limits.
(c) Non-Application of certain limitations for itemizers (1) Deduction not treated as a miscellaneous itemized deduction Section 67(b) of the Internal Revenue Code of 1986 is amended
(13) the deduction under section 224 (relating to cash tips).
(2) Deduction not taken into account under overall limitation Section 68(c) of the Internal Revenue Code of 1986 is amended
(4) the deduction under section 224 (relating to cash tips).
The Treasury Secretary or a delegate would have to update income-tax withholding tables and procedures—the rules for tax taken out of pay—to account for the new deduction.
The Secretary of the Treasury (or the Secretary's delegate) shall modify the tables and procedures prescribed under section 3402(a) of the Internal Revenue Code of 1986 to take into account the deduction allowed under section 224 of such Code (as added by this Act).
The tax amendments in section 3 would apply to tax years beginning after December 31, 2025. This date is expressly limited to that section.
(e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
The supplied actions snapshot, updated October 14, 2026, records introduction in the House on February 13, 2025, and referral that day to the Ways and Means Committee and the Education and Workforce Committee for provisions within their respective jurisdictions.
Source snapshot updated 2026-10-14T08:05:24Z.
2025-02-13: Introduced in House
2025-02-13: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
A closer look
Reviewed version: Introduced in House · 2025-02-13. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out or preferential exception beyond the main policy’s intended beneficiaries was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Oct 14, 2026. How PlainBill uses AI