HF 1024 (LSB 2256HV (1) 91)

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, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  45.  Subtract, to the extent included, the portion of compensation that is authorized pursuant to 29 U.S.C. §207 to be earned at not less than one and one-half times the regular rate at which the person is employed.
    Sec. 2.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2026.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill excludes overtime pay from the individual income tax. The bill excludes from the individual income tax the portion of compensation that is authorized pursuant to 29 U.S.C. §207 to be earned at not less than one and one-half times the regular rate at which the person is employed.
   The bill applies to tax years beginning on or after January 1, 2026.