,,ii  #aai? ,,congress  #a/ ,session    
,s4 #abi  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,janu>y #af1 #bjbe,mr4 
,cruz 7= himself1 ,mr4 ,da9es1 ,ms4     
,ros51 ,mr4 ,ricketts1 ,ms4 ,cortez     
,ma/o1 ,mr4 ,hawley1 ,mr4 ,scott (      
,florida1 & ,mr4 ,cram]7 introduc$ !    
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to elim9ate ! application ( !     
income tax on qualifi$ tips ?r\gh a     
d$uction all[$ to all individual        
taxpay]s1 & = o!r purposes4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,no ,tax
 on ,tips ,act4  #b4 ,d$uction =        
qualifi$ tips  7a7 ,9 g5]al  7#a7       
,d$uction all[$ ,"p ,,vii ( sub*apt] ,b 
( *apt] #a ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by r$esignat+ section    
#bbd z section #bbe & by ins]t+ aft]    
section #bbc ! foll[+ new section3      
#bbd4 ,qualifi$ tips  7a7 ,9 g5]al ,!re 
%all be all[$ z a d$uction an am\nt     
equal to ! qualifi$ tips receiv$ dur+ ! 

taxable ye> t are includ$ on /atem5ts   
furni%$ to ! employ] pursuant to section
 #fjec7;a74  7b7 ,maximum d$uction ,!   
d$uction all[$ by subsection 7a7 = any  
taxpay] = ! taxable ye> %all n exce$    
#be1jjj4  7c7 ,qualifi$ tips ,= purposes
 ( ?is section-- 7#a7 ,9 g5]al ,! t]m   
qualifi$ tip means any ca% tip receiv$  
by an individual 9 ! c\rse ( su*        
individual's employm5t 9 an occupation  
:i* traditionally & cu/om>ily receiv$   
tips on or be=e ,decemb] #ca1 #bjbc1 z  
provid$ by ! ,secret>y4  7#b7 ,exclusion
 = c]ta9 employees ,su* t]m %all n      
include any am\nt receiv$ by an         
individual 9 ! c\rse ( employm5t by an  
employ] if su* individual _h1 = ! prec$+
 taxable ye>1 comp5sation 7)9 ! mean+ ( 
section #dad7q777#d7 f su* employ] 9    
excess ( ! am\nt 9 effect "u section    
#dad7q77#a77;,b77i74  4  7#b7 ,publi%$  
li/ ( occupations traditionally receiv+ 
tips ,n lat] ?an #ij days aft] ! date ( 
! enactm5t ( ?is ,act1 ! ,secret>y ( !  
,treasury 7or ! ,secret>y's delegate7   

%all publi% a li/ ( occupations :i*     
traditionally & cu/om>ily receiv$ tips  
on or be=e ,decemb] #ca1 #bjbc1 =       
purposes ( section #bbd7;c77#a7 ( !     
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by p>agraph 7#a774  7#c7 ,con=m+ am5dm5t
 ,! table ( sections = "p ,,vii (       
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by r$esignat+ ! item relat+ to    
section #bbd z relat+ to section #bbe & 
by ins]t+ aft] ! item relat+ to section 
#bbc ! foll[+ new item3  ,sec4 #bbd4    
,qualifi$ tips4  4  7b7 ,d$uction all[$ 
to non-,itemiz]s ,section #fc7;b7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( p>agraph 7#c71 by 
/rik+ ! p]iod at ! end ( p>agraph 7#d7 &
 ins]t+ &1 & by add+ at ! end ! foll[+  
new p>agraph3  7#e7 ! d$uction provid$ 9
 section #bbd4  4  7c7 ,non-,application
 ( c]ta9 limitations = itemiz]s  7#a7   
,d$uction n treat$ z a miscellane\s     
itemiz$ d$uction ,section #fg7;b7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( p>agraph 7#aa71 by

 /rik+ ! p]iod at ! end ( p>agraph 7#ab7
 & ins]t+ 1 &1 & by add+ at ! end !     
foll[+ new p>agraph3  7#ac7 ! d$uction  
"u section #bbd 7relat+ to qualifi$     
tips74  4  7#b7 ,d$uction n tak5 into   
acc\nt "u ov]all limitation ,section    
#fh7;c7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by /rik+ & at ! end (    
p>agraph 7#b71 by /rik+ ! p]iod at ! end
 ( p>agraph 7#c7 & ins]t+ 1 &1 & by add+
 at ! end ! foll[+ new p>agraph3  7#d7 !
 d$uction "u section #bbd 7relat+ to    
qualifi$ tips74  4  7d7 ,)hold+ ,!      
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 %all modify !     
tables & proc$ures prescrib$ "u section 
#cdjb7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf to take into acc\nt ! d$uction    
all[$ "u section #bbd ( su* ,code 7z    
add$ by ?is ,act74  7e7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjbd4  #c4 ,ext5sion (   
cr$it = portion ( employ] social        
security taxes paid ) respect to        

employee tips to beauty s]vice          
e/abli%m5ts  7a7 ,ext5sion ( tip cr$it  
to beauty s]vice bus9ess  7#a7 ,9 g5]al 
,section #de;,b7b77#b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7#b7 ,application only to     
c]ta9 l9es ( bus9ess ,9 apply+ p>agraph 
7#a7 !re %all be tak5 into acc\nt only  
tips receiv$ f cu/om]s or cli5ts 9      
connection ) ! foll[+ s]vices3 7,a7 ,!  
provid+1 deliv]+1 or s]v+ ( food or     
bev]ages = consumption1 if ! tipp+ (    
employees deliv]+ or s]v+ food or       
bev]ages by cu/om]s is cu/om>y4  7,b7 ,!
 provid+ ( beauty s]vices to a cu/om] or
 cli5t if ! tipp+ ( employees provid+   
su* s]vices is cu/om>y4  4  7#b7 ,beauty
 s]vice def9$ ,section #de;,b ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 new subsection3  7e7 ,beauty s]vice ,= 
purposes ( ?is section1 ! t]m beauty    
s]vice means any ( ! foll[+3 7#a7 ,b>b]+
 & hair c>e4  7#b7 ,nail c>e4  7#c7     
,e/hetics4  7#d7 ,body & spa treatm5ts4 
4  7b7 ,cr$it det]m9$ ) respect to      

m9imum wage 9 effect ,section           
#de;,b7b77#a77;,b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$-- 7#a7 by /rik+ z
 9 effect on ,janu>y #a1 #bjjg1 &2 &    
7#b7 by ins]t+ 1 & 9 ! case ( food or   
bev]age e/abli%m5ts1 z 9 effect on      
,janu>y #a1 #bjjg aft] )\t reg>d to     
section #c7m7 ( su* ,act4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbd4