Section 1 Short title
This Act may be cited as the “Tax Cut for Striking Workers Act of 2025”.
Tax Cut for Striking Workers Act of 2025
A BILL
To amend the Internal Revenue Code of 1986 to exclude strike benefits from gross income.
Sec. 2 Strike benefits
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986, as amended by Public Law 119–21, is amended by inserting after section 139L the following new section:
“139M. Compensation for lost wages relating to a strike, lockout, or work stoppage
“(a) In general—In the case of an individual, gross income shall not include qualified strike benefits.
“(b) Qualified strike benefits—For purposes of this section, the term qualified strike benefits means compensation provided by a labor organization described in section 501(c)(5) and exempt from tax under section 501(a) to a member of such organization if such compensation is provided as a replacement, in whole or in part, for compensation not received by such member from such member’s employer as the result of a strike or lockout arising from a labor dispute (as defined in section 2 of the National Labor Relations Act), or a work stoppage under the Railway Labor Act.”
Treatment under earned income tax credit— Section 32(c)(2)(B)(vi) of the Internal Revenue Code of 1986 is amended by inserting “or 139M” after “by reason of section 112”.
Clerical amendment— The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986, as amended by Public Law 119–21, is amended by inserting after the item relating to section 139L the following new item:
Effective date— The amendments made by this section shall apply to compensation received after December 31, 2025.