This bill introduces a new section to the Internal Revenue Code, establishing a temporary tax deduction for certain reported tips. Its primary purpose is to provide tax relief for low- and moderate-income earners in eligible service sectors by allowing them to exclude a portion of their tip income from gross income. This deduction applies to "qualified tips," defined as cash tips received in occupations that customarily and regularly received tips before December 31, 2024. The deduction is capped at a maximum of $35,000 per taxable year and is subject to income-based phase-outs. For individuals, the deduction begins to reduce with modified adjusted gross income (AGI) between $50,000 and $75,000, while for joint filers, it applies between $100,000 and $150,000. No exclusion is permitted for individuals with AGI exceeding $75,000 or joint filers exceeding $150,000, and tips from certain "specified service trade or business" are not eligible. The Secretary of the Treasury is mandated to publish a list of eligible occupations and modify withholding procedures to account for this deduction. This provision is set to apply to taxable years beginning after December 31, 2025, and will expire for taxable years beginning on December 31, 2028. Following its expiration, the Secretary will initiate a pilot program to assess the benefits of permanently extending these tip tax exemptions, alongside submitting biennial reports to Congress evaluating the exclusion's utilization and impact.