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

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119th CONGRESS
  1st Session
                                H. R. 5475

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


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                    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.
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