Bill > LB30

This bill provides an income tax adjustment for individuals who receive overtime pay, specifically allowing them to subtract from their federal adjusted gross income any amount earned from overtime compensation as defined by the federal Fair Labor Standards Act (FLSA). Starting in the tax year beginning January 1, 2025, individuals will be able to exclude overtime income from their state income tax calculations, reducing their taxable income. The FLSA is a federal labor law that establishes minimum wage, overtime pay eligibility, recordkeeping, and youth employment standards, and this bill aims to provide tax relief for workers who earn additional income through overtime hours. The bill amends section 77-2716 of the Nebraska Revised Statutes by adding a new subsection (27) that specifically allows this income tax subtraction, and it repeals the original section to replace it with the updated version that includes the new overtime compensation provision.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59225