This bill provides federal support for western states combating wildfires, potentially including funding for firefighting resources, forest management, community protection, and recovery assistance for fire-affected areas.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
This bill provides federal support for western states combating wildfires, potentially including funding for firefighting resources, forest management, community protection, and recovery assistance for fire-affected areas.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>No Tax on Tips Act</strong></p><p>This bill establishes a new tax deduction of up to $25,000 for tips, subject to limitations. The bill also expands the business tax credit for the portion of payroll taxes an employer pays on certain tips to include payroll taxes paid on tips received in connection with certain beauty services.</p><p>Under the bill, the new tax deduction for tips is limited to cash tips (1) received by an employee during the course of employment in an occupation that customarily receives tips, and (2) reported by the employee to the employer for purposes of withholding payroll taxes. (Under current law, an employee is required to report tips exceeding $20 per month to their employer.)</p><p>Further, an employee with compensation exceeding a specified threshold ($160,000 in 2025 and adjusted annually for inflation) in the prior tax year may not claim the new tax deduction for tips.</p><p>Finally, the bill expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips to include payroll taxes paid on tips received in connection with barbering and hair care, nail care, esthetics, and body and spa treatments. (Under current law, an employer is allowed a business tax credit for the amount of payroll taxes paid on certain tips received by an employee in connection with providing, delivering, or serving food or beverages.) </p>
Key Points
Main provisions of the bill
Provides federal wildfire support for western states
May fund firefighting resources and equipment
Could support forest management efforts
Assists community wildfire protection
Helps fire-affected areas recover
How This Impacts Americans
Potential effects on citizens and communities
Western communities threatened by wildfires would receive federal support. Firefighting agencies would have additional resources. Forest management and fire prevention efforts would be enhanced.
Policy Areas
Primary Policy Area
Taxation
Related Subjects
Accounting and auditing
Food industry and services
Income tax deductions
Service industries
Tax administration and collection, taxpayers
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
482, 119th Congress (2025). "Western Wildfire Support Act of 2023". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-482
