Adds new section 139M (Qualified holiday bonuses) to Part III of subchapter B of chapter 1 of the Internal Revenue Code, excluding qualified holiday bonuses from gross income, setting a $2,500 per-individual limit (with inflation adjustment), defining the term, and requiring regulations to prevent abuse.

Amends section 6051(a) by adding a new paragraph (20) requiring reporting of the total amount of qualified holiday bonuses (as defined in new section 139M(c)) on the applicable information return.

Clerical amendment to the table of sections for part III of subchapter B of chapter 1, inserting a new item for section 139M after the item for section 139L.