| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 1046 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to exclude overtime |
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| 6 | 6 | | compensation from gross income for purposes of the income tax. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | MARCH13, 2025 |
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| 9 | 9 | | Mr. H |
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| 10 | 10 | | AWLEYintroduced the following bill; which was read twice and referred |
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| 11 | 11 | | to the Committee on Finance |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to exclude |
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| 14 | 14 | | overtime compensation from gross income for purposes |
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| 15 | 15 | | of the income tax. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘No Tax On Overtime 4 |
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| 20 | 20 | | Act of 2025’’. 5 |
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| 21 | 21 | | SEC. 2. EXCLUSION OF OVERTIME COMPENSATION FROM 6 |
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| 22 | 22 | | GROSS INCOME. 7 |
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| 23 | 23 | | (a) I |
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| 24 | 24 | | NGENERAL.—Part III of subchapter B of chap-8 |
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| 25 | 25 | | ter 1 of the Internal Revenue Code of 1986 is amended 9 |
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| 26 | 26 | | by inserting after section 139I the following new section: 10 |
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| 27 | 27 | | VerDate Sep 11 2014 00:09 Mar 27, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1046.IS S1046 |
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| 28 | 28 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 29 | 29 | | •S 1046 IS |
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| 30 | 30 | | ‘‘SEC. 139J. OVERTIME COMPENSATION. 1 |
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| 31 | 31 | | ‘‘Gross income shall not include overtime compensa-2 |
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| 32 | 32 | | tion required under section 7 of the Fair Labor Standards 3 |
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| 33 | 33 | | Act of 1938.’’. 4 |
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| 34 | 34 | | (b) C |
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| 35 | 35 | | LERICALAMENDMENT.—The table of sections 5 |
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| 36 | 36 | | for part III of subchapter B of chapter 1 of such Code 6 |
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| 37 | 37 | | is amended by inserting after the item relating to section 7 |
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| 38 | 38 | | 139I the following new item: 8 |
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| 39 | 39 | | ‘‘Sec. 139J. Overtime compensation.’’. |
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| 40 | 40 | | (c) EFFECTIVEDATE.—The amendments made by 9 |
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| 41 | 41 | | this section shall apply to amounts received after the date 10 |
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| 42 | 42 | | of the enactment of this Act. 11 |
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| 43 | 43 | | Æ |
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| 44 | 44 | | VerDate Sep 11 2014 00:09 Mar 27, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S1046.IS S1046 |
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| 45 | 45 | | ssavage on LAPJG3WLY3PROD with BILLS |
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