Adds beauty services (salons, barbershops, spas, and similar) to the types of tipped businesses eligible for a partial employer Social Security tax credit on employee tips, provided tipped receipts from beauty services exceed 15% of gross receipts for those services. Creates a new IRS “tip program safe harbor” that shields qualifying employers from tip examinations if they run an approved education program, require monthly tip reporting, follow tax filing/payment rules, and keep records for at least four years. Also requires certain landlords or property owners who receive $600+ annually in rent from two or more beauty service providers to file a reporting return and provide written statements to those tenants.

The credit expansion is effective for taxable years beginning after December 31, 2024; the tip-program safe harbor and rental-payment reporting rules apply to taxable years or payments after December 31, 2025. The bill changes tax law, adds employer compliance steps, and creates a new information-reporting obligation for property owners who lease space to multiple beauty-service providers.