II
119THCONGRESS
1
STSESSION S. 1046
To amend the Internal Revenue Code of 1986 to exclude overtime
compensation from gross income for purposes of the income tax.
IN THE SENATE OF THE UNITED STATES
MARCH13, 2025
Mr. H
AWLEYintroduced the following bill; which was read twice and referred
to the Committee on Finance
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 ‘‘No Tax On Overtime 4
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
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•S 1046 IS
‘‘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
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