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This bill amends the Internal Revenue Code to allow a deduction for certain overtime compensation, making such compensation not subject to federal income tax. Sec. 2, Deduction for certain overtime compensation: The bill defines 'qualified overtime compensation' as either overtime pay required under the Fair Labor Standards Act that exceeds an employee's regular rate, or compensation paid above the regular rate under a pre-arranged agreement with a single employer for work beyond a standard number of hours (at least 40 hours in a 7-day period) or, for employees covered by the Railway Labor Act, for work beyond scheduled or anticipated hours or exceeding a maximum hours limit. The amendment applies to taxable years beginning after December 31, 2024.
Summary of the bill text as introduced in House (Sep 18, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.