Bill > S03914

This bill proposes to amend tax law to allow individuals to subtract overtime compensation from their federal adjusted gross income, meaning it would reduce their taxable income. Overtime compensation is defined as wages earned for working beyond an individual's normal scheduled hours. The bill further clarifies that for certain "qualified overtime compensation," it includes pay exceeding an individual's regular rate if it's for work for a single employer under an agreement made before the work was performed, and either the work exceeds a standard of at least 40 hours per week or, for employees covered by the Railway Labor Act, it's for hours beyond scheduled or anticipated duty that exceed a maximum number of hours as determined by the agreement. This provision is intended to provide a tax benefit for overtime earnings and will take effect immediately, applying to tax years beginning on or after January 1, 2026.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3914