Bill > HB194

This bill creates a new tax deduction for Louisiana residents who receive overtime compensation, with several specific conditions. Under the proposed law, taxpayers can deduct overtime pay from their tax table income, but only for overtime compensation as defined by the Fair Labor Standards Act. The deduction is limited to 20% of an individual's other wages from the same employer during the taxable year. To be eligible, taxpayers must have adjusted gross incomes below certain thresholds based on their filing status: $200,000 for married filing jointly or surviving spouse, $150,000 for head of household, and $100,000 for single or married filing separately. The bill defines "overtime compensation" as pay required under federal law for hours worked beyond standard work hours, typically 40 hours per week. This tax deduction aims to provide financial relief for workers who earn extra income through overtime, but only for those within specified income brackets. The provisions will take effect for taxable periods beginning on or after January 1, 2026, giving taxpayers and tax authorities time to prepare for the new deduction.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB194&sbi=y