H.R. 2565 — No Tax on Bonuses Act of 2025

This section excludes from gross income qualified bonuses paid by the Secretary concerned to members of the Armed Forces, defined to include enlistment, accession, reenlistment, retention, incentive, or other bonuses in exchange for agreements to accept a commission as an officer, extend active service as an officer, enlist or reenlist as an enlisted member in an active or reserve component, or enter a reserve affiliation agreement (using definitions of relevant terms from 10 U.S.C. §101). The exclusion applies to taxable years beginning after enactment.