[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4740 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4740

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2025

  Mrs. Sykes 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 such compensation is paid--
                            ``(i) at a rate of not less than one and 
                        one-half times such regular rate,
                            ``(ii) for work for a single employer that 
                        is in excess of a standard number of hours of 
                        such work for a specified period of time, and
                            ``(iii) as required by a collective 
                        bargaining agreement, or an agreement between 
                        such employer and employee, which--
                                    ``(I) was entered into before the 
                                performance of the work, and
                                    ``(II) 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.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.
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