H.R. 8816

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8816 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8816

To amend the Internal Revenue Code of 1986 to exclude strike benefits 
from gross income.

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IN THE HOUSE OF REPRESENTATIVES

May 14, 2026

Mr. Horsford (for himself, Ms. Kamlager-Dove, and Ms. Titus) introduced 
the following bill; which was referred to the Committee on Ways and 
Means

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A BILL

To amend the Internal Revenue Code of 1986 to exclude strike benefits 
from gross income.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Tax Cut for Striking Workers Act of 
2026''.

SEC. 2. STRIKE BENEFITS.

(a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139L the following new section:

``SEC. 139M. COMPENSATION FOR LOST WAGES RELATING TO A STRIKE, LOCKOUT, 
OR WORK STOPPAGE.

``(a) In General.--In the case of an individual, gross income shall 
not include qualified strike benefits.
``(b) Qualified Strike Benefits.--For purposes of this section, the 
term `qualified strike benefits' means compensation provided by a labor 
organization described in section 501(c)(5) and exempt from tax under 
section 501(a) to a member of such organization if such compensation is 
provided as a replacement, in whole or in part, for compensation not 
received by such member from such member's employer as the result of a 
strike or lockout arising from a labor dispute (as defined in section 2 
of the National Labor Relations Act), or a work stoppage under the 
Railway Labor Act.''.
(b) Treatment Under Earned Income Tax Credit.--Section 
32(c)(2)(B)(vi) of the Internal Revenue Code of 1986 is amended by 
inserting ``or 139M'' after ``by reason of section 112''.
(c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 139L the 
following new item:

``Sec. 139M. Compensation for lost wages relating to a strike, lockout, 
or work stoppage.''.
(d) Effective Date.--The amendments made by this section shall 
apply to compensation received after December 31, 2026.
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