Bill > A08965

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" as defined by federal tax law (specifically section 225(c) of the Internal Revenue Code), it includes pay exceeding an employee'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 work beyond scheduled or anticipated duty hours that exceed a maximum limit. This change would take effect immediately and apply to tax years starting on or after January 1, 2026.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A8965