“A bill to amend the Internal Revenue Code of 1986 to allow a deduction for certain overtime compensation.”
No CRS summary available for this bill.
This section revises the definition of qualified overtime compensation eligible for the IRC §225 deduction to mean (1) overtime pay required under §7 of the Fair Labor Standards Act of 1938 in excess of the employee's regular rate, or (2) pay in excess of the regular rate pursuant to a pre-work agreement between the employee (or representing labor organization) and a single employer for either (A) work exceeding a standard of at least 40 hours in a specified 7-day period or (B) work by Railway Labor Act-covered employees—including crewmembers, flight crewmembers, or rail operating craft employees—beyond scheduled or anticipated hours or exceeding maximum hours per the agreement. The revision applies to taxable years beginning after December 31, 2024.