The Treasury Department has taken a step closer to fulfilling President Donald Trump’s promise of no tax on tips with the release of new guidance. The proposed regulations, submitted to the Federal Register, provide details on the occupations covered by the rule and the qualifications for claiming the benefit of tax-free tips.

The provision, part of the Republicans’ tax and spending law, allows certain workers to deduct up to $25,000 in qualified tips per year from 2025 through 2028, with a phase-out for higher income earners. In order to qualify as a tip, it must be earned in one of the Treasury’s listed occupations, be voluntary, and given in traditional forms such as cash, check, or gift card.