Representative Tran Co-sponsors Tipped Income Protection Legislation in Support of Local Service Workers

Washington, D.C. - U.S. Representative Derek Tran (CA-45) co-sponsored H.R. 1314, the Tipped Income Protection and Support Act (TIPS Act) to allow service industry professionals to deduct their tips when filing taxes. This legislation would increase the maximum amount that service workers can deduct from an adjusted gross income of $25,000 to $112,500, and make this change permanent for service workers across the country.

"While prices skyrocket due to President Trump's reckless war in Iran and irresponsible tariff policies, working families are under an immense amount of stress as they struggle to make ends meet. For service workers, tips are essential to putting food on the table, handling everyday expenses, and providing for their loved ones. I'm a proud cosponsor of the TIPS Act because it creates a measurable economic impact for service workers and their families in Southern California - putting more money in their pockets and strengthening their financial futures," said Representative Tran.

The TIPS Act applies to cosmetology, hospitality, food/beverage, parking, and custodial service employees, benefiting nearly 70,000 service industry professionals in California's 45th Congressional District. This legislation was introduced by Representative Steven Horsford (NV-04) in the 119th Congress. Unlike the provision in H.R.1 - the so-called "One Big Beautiful Bill Act" - this legislation would make the increased deduction for service workers permanent instead of sunsetting it at the end of 2028.

Representative Tran remains focused on addressing the affordability crisis and has continuously championed legislation to lower prices for working families:

• In May 2026, Tran joined fellow members of the Lowering Costs Caucus in a letter urging the Trump Administration to address skyrocketing energy prices.
• In July 2025, Representative Tran introduced the Baby Food Tax Relief Act to exempt essential baby feeding products, such as formula, high chairs, and baby bottles, from tariffs to lower costs for hard-working parents.
• Tran also cosponsored the Affordable Housing Credit Improvement Act to finance the building of more multifamily units and the First-Time Homebuyer Tax Credit Act, which establishes a refundable tax credit for first-time homebuyers.

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