Bill > SB0174

This bill amends the Illinois Income Tax Act to create a new tax deduction for overtime wages. Specifically, for taxable years beginning on or after January 1, 2026, individual taxpayers can deduct an amount equal to any overtime wages paid to them during the taxable year, in excess of their regular and normal monthly or weekly salary. The bill adds this new deduction as a subtraction modification under the Illinois Income Tax Act, which means it will reduce a taxpayer's taxable income. The provision is part of Section 203(a)(2), which lists various modifications that can be made to a taxpayer's base income. The bill is designed to provide a tax benefit to workers who earn overtime pay, potentially offering some financial relief to employees who work additional hours beyond their standard work schedule.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=174&GAID=18&DocTypeID=SB&SessionID=114&GA=104