No Tax on LOSAP Act

HR 2279, the "No Tax on LOSAP Act," increases the tax exclusion for length-of-service awards from $50 to $1,000 per year for employees receiving these awards from their employers. It clarifies that payments under length-of-service award programs (LOSAPs) are explicitly included in the tax exclusion definition, removing ambiguity. The bill applies to awards given after its enactment date. This change directly affects employees who receive recognition awards for tenure, making the first $1,000 of such awards tax-free annually.