House File 1024 - Introduced HOUSE FILE 1024 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 110) A BILL FOR An Act excluding overtime pay from the individual income tax, 1 and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2256HV (1) 91 jm/jh

H.F. 1024 Section 1. Section 422.7, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 45. Subtract, to the extent included, 3 the portion of compensation that is authorized pursuant to 29 4 U.S.C. §207 to be earned at not less than one and one-half 5 times the regular rate at which the person is employed. 6 Sec. 2. APPLICABILITY. This Act applies to tax years 7 beginning on or after January 1, 2026. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill excludes overtime pay from the individual income 12 tax. The bill excludes from the individual income tax the 13 portion of compensation that is authorized pursuant to 29 14 U.S.C. §207 to be earned at not less than one and one-half 15 times the regular rate at which the person is employed. 16 The bill applies to tax years beginning on or after January 17 1, 2026. 18 -1- LSB 2256HV (1) 91 jm/jh 1/ 1