Bill > HB527

This bill establishes a new deduction for qualified overtime income on individual income taxes for tax years beginning on or after January 1, 2026, and ending December 31, 2028, allowing taxpayers to deduct up to $1,000 in qualified overtime compensation, with the definition and calculation of this compensation to follow federal guidelines outlined in 26 U.S.C. § 225, and this deduction can be claimed regardless of whether the taxpayer itemizes deductions. Additionally, the bill includes a temporary suspension of the state portion of sales and use taxes on food from May 1, 2026, through June 30, 2026, with Section 1 of the bill becoming effective on October 1, 2026, and Section 2 becoming effective immediately upon passage.

Budget and Finance

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