Tax Cut for Striking Workers Act of 2026
- Bill Number
- H.R. 8816
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-05-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-02T05:53:28Z
AI-Generated Summary
Purpose of the Legislation This bill amends the Internal Revenue Code of 1986 to exclude certain strike benefits from gross income, thereby preventing federal income taxation on compensation provided by labor organizations to their members during labor disputes.
Key Provisions
- Adds new Section 139M to the Internal Revenue Code, which states that gross income does not include "qualified strike benefits."
- Defines qualified strike benefits as compensation from a tax-exempt labor organization under Section 501(c)(5) provided to members to replace wages lost due to a strike, lockout, or work stoppage under the National Labor Relations Act or Railway Labor Act.
- Amends Section 32(c)(2)(B)(vi) to include these benefits in the treatment for the Earned Income Tax Credit.
- Includes a clerical amendment to update the table of sections.
- Applies to compensation received after December 31, 2026.
Significant Changes to Existing Law Under current law, strike benefits from labor organizations are generally included in gross income and subject to federal taxation. This legislation creates a specific exclusion for such payments when they serve as wage replacements during labor disputes, marking a targeted change to tax treatment of union-provided support.
Potential Impacts
- On citizens: Individuals receiving strike benefits would not owe federal income tax on those amounts, potentially increasing net financial support during work stoppages.
- On government agencies: The Internal Revenue Service would forgo tax revenue from these excluded benefits and adjust withholding or reporting rules accordingly.
- No direct effects on international relations are addressed in the legislation.
Main Stakeholders Affected
- Members of labor organizations who participate in strikes or lockouts.
- Labor organizations classified under Section 501(c)(5) of the Internal Revenue Code.
- Employers involved in labor disputes.
- The Internal Revenue Service, which administers the tax code changes.
Notable Legal, Constitutional, or Political Implications The bill operates within Congress's authority to modify the Internal Revenue Code under the taxing and spending powers. It introduces no apparent constitutional conflicts but could influence labor-management dynamics by altering the tax treatment of union assistance during disputes. The effective date is set for compensation received after December 31, 2026, allowing time for implementation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Horsford, Steven [D-NV-4]
Cosponsors (2)
Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Titus, Dina [D-NV-1]
Recent Actions
- 2026-05-14: Referred to the House Committee on Ways and Means.
- 2026-05-14: Introduced in House
- 2026-05-14: Introduced in House
Bill Versions
- Tax Cut for Striking Workers Act of 2026 — issued 2026-05-14 — PDF (3 pages)