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Bill > HF110
IA HF110
IA HF110A bill for an act excluding overtime pay from the individual income tax, and including applicability provisions.(See HF 1024.)
summary
Introduced
01/22/2025
01/22/2025
In Committee
01/22/2025
01/22/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill excludes overtime pay from the individual income tax. The bill excludes from the individual income tax the portion of compensation that is authorized pursuant to 29 U.S.C. §207 to be earned at not less than one and one-half times the regular rate at which the person is employed. The bill applies to tax years beginning on or after January 1, 2026.
AI Summary
This bill proposes to modify Iowa's individual income tax code by excluding overtime pay from taxable income. Specifically, the bill allows taxpayers to subtract from their taxable income any compensation earned at a rate of at least one and one-half times their regular pay rate, which is authorized under the federal Fair Labor Standards Act (29 U.S.C. §207). This means that if an employee works more than 40 hours in a week and receives overtime pay at 1.5 times their normal hourly rate, that additional compensation would be exempt from Iowa state income tax. The bill's provisions will take effect for tax years beginning on or after January 1, 2026, giving taxpayers and tax authorities time to prepare for the change. By excluding overtime pay from taxable income, the bill aims to provide financial relief to workers who earn extra income by working additional hours.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Committee report approving bill, renumbered as HF 1024. (on 04/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF110 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF110.html |
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