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HR 2655
Introduced Re-checks Congress.gov for new actions and updates the bill's status, and fills in any sponsors, committees, or related bills that are missing. It does not re-pull sponsors/cosponsors/committees/related — those rarely change — and it skips all work if nothing has changed upstream, so it's cheap to click.

To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.

To amend the Internal Revenue Code of 1986 to sunset the Federal income tax on unemployment compensation.

Introduced Apr 3, 2025

Latest action (Apr 3, 2025) Referred to the House Committee on Ways and Means.

Policy area
Issues
Economy & Taxes

Summary

This bill eliminates the federal income tax on unemployment compensation. Under current law, unemployment benefits are required to be included in a recipient's gross income for federal tax purposes. The bill amends the Internal Revenue Code to end this requirement for taxable years beginning after December 31, 2024. The change applies to unemployment compensation received after December 31, 2024.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Actions (2)

  1. Apr 3, 2025 Referred to the House Committee on Ways and Means. · house
  2. Apr 3, 2025 Introduced in House

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

Text versions (1)

  • Introduced in House · Apr 3, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

IN THE HOUSE OF REPRESENTATIVES

April 3, 2025

Mr. Thanedar (for himself, Mr. Johnson of Georgia, Mrs. Foushee, Ms. Norton, and Ms. Bynum) 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 sunset the Federal income tax on unemployment compensation.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. TERMINATION OF TAX ON UNEMPLOYMENT COMPENSATION.

(a) In General.—Section 85 of the Internal Revenue Code of 1986 is amended by striking subsection (c) and inserting the following new subsection:

“(c) Termination of Inclusion in Gross Income.—This section shall not apply to taxable years beginning after December 31, 2024.”.

(b) Effective Date.—The amendment made by this section shall apply to amounts received after December 31, 2024, in taxable years ending after such date. <all>

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