[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
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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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