Bill > HB1899

This bill amends the Illinois Income Tax Act to create a new tax deduction for overtime compensation. Specifically, for taxable years beginning on or after January 1, 2026, individual taxpayers can deduct the amount of overtime compensation they receive during the taxable year that is included in their federal adjusted gross income. The bill defines "overtime compensation" using the definition from the federal Fair Labor Standards Act. This means that workers who earn extra pay for hours worked beyond a standard work week can reduce their state income tax burden by deducting those additional earnings. The deduction is exempt from certain standard income tax calculation provisions, which suggests it is intended to provide meaningful tax relief for workers who put in extra hours.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1899&GAID=18&DocTypeID=HB&SessionID=114&GA=104