119-hr5475

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5475 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5475

 To amend the Internal Revenue Code of 1986 to allow a deduction for 
 certain overtime compensation.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 18, 2025

 Ms. Malliotakis (for herself, Mrs. Sykes, Mr. LaLota, Mr. Suozzi, Mr. 
Fitzpatrick, and Mr. Horsford) 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 allow a deduction for 
 certain overtime compensation.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``No Tax on Overtime for All Workers 
Act''.

SEC. 2. DEDUCTION FOR CERTAIN OVERTIME COMPENSATION.

    (a) In General.--

Section 225
            (c) (1) of the Internal Revenue Code of 
1986 is amended to read as follows:
 ``

    (1) In general.--For purposes of this section, the term 
 `qualified overtime compensation' means--
 ``
        (A) any overtime compensation paid to an 
 individual required under 

section 7 of the Fair Labor 
 Standards Act of 1938 that is in excess of the regular 
 rate (as used in such section) at which such individual 
 is employed, or
 ``
        (B) any compensation paid to an individual that 
 is in excess of the regular rate at which such 
 individual is employed if--
 ``
            (i) such compensation is paid for work 
 for a single employer pursuant to an agreement 
 between the employee (or labor organization 
 representing such employee) and employer 
 entered into before the performance of the 
 work, and
 ``
            (ii) either--
 ``
            (I) such work is in excess of a 
 standard number of hours of such work 
 for a specified period of time, and 
 such agreement specifies that such 
 standard number of hours for a 
 specified period of time is not less 
 than 40 hours for a 7-day work period, 
 or
 ``
            (II) if the employee (including 
 any crewmember or flight crewmember, or 
 rail operating craft employee) and 
 employer referred to in clause
            (i) are 
 both covered by the Railway Labor Act, 
 such work is beyond scheduled or 
 anticipated hours on duty or for hours 
 on duty that exceed a maximum number of 
 hours with respect to a specified 
 period of time (as determined pursuant 
 to such agreement).''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.
 <all>