I
119THCONGRESS
1
STSESSION H. R. 405
To amend the Internal Revenue Code of 1986 to exclude overtime
compensation from gross income for purposes of the income tax.
IN THE HOUSE OF REPRESENTATIVES
JANUARY15, 2025
Mr. F
ULCHER(for himself and Mr. RULLI) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
overtime compensation from gross income for purposes
of the income tax.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Keep Every Extra 4
Penny Act of 2025’’. 5
SEC. 2. EXCLUSION OF OVERTIME COMPENSATION FROM 6
GROSS INCOME. 7
(a) I
NGENERAL.—Part III of subchapter B of chap-8
ter 1 of the Internal Revenue Code of 1986 is amended 9
by inserting after section 139I the following new section: 10
VerDate Sep 11 2014 16:46 Feb 06, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H405.IH H405
ssavage on LAPJG3WLY3PROD with BILLS 2
•HR 405 IH
‘‘SEC. 139J. OVERTIME COMPENSATION. 1
‘‘Gross income shall not include overtime compensa-2
tion required under section 7 of the Fair Labor Standards 3
Act of 1938.’’. 4
(b) C
LERICALAMENDMENT.—The table of sections 5
for part III of subchapter B of chapter 1 of such Code 6
is amended by inserting after the item relating to section 7
139I the following new item: 8
‘‘Sec. 139J. Overtime compensation.’’.
(c) EFFECTIVEDATE.—The amendments made by 9
this section shall apply to amounts received after the date 10
of the enactment of this Act. 11
Æ
VerDate Sep 11 2014 16:46 Feb 06, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H405.IH H405
ssavage on LAPJG3WLY3PROD with BILLS