Bill > HB1035

This bill allows Maryland residents to subtract certain overtime compensation from their state income tax, meaning they will pay less tax on that income. This subtraction is based on the definition of "qualified overtime compensation" as stated in Section 225 of the Internal Revenue Code, which is a federal law that provides deductions for specific types of overtime pay. The bill is designed to be a temporary measure, applying only to taxable years beginning after December 31, 2025, and before January 1, 2029, after which it will automatically expire.