House File 360 - Introduced HOUSE FILE 360 BY COOLING A BILL FOR An Act excluding overtime from the individual income tax, and 1 including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1748YH (5) 91 jm/jh

H.F. 360 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, the 3 portion of compensation that is earned for a workweek that 4 exceeds forty hours and is compensated at a rate not less than 5 one and one-half times but not exceeding twice the regular rate 6 at which the person is employed, as authorized by 29 U.S.C. 7 §207. 8 Sec. 2. APPLICABILITY. This Act applies to tax years 9 beginning on or after January 1, 2026. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill excludes overtime pay from the individual income 14 tax. The bill excludes from the individual income tax the 15 portion of overtime compensation that is authorized pursuant to 16 29 U.S.C. §207 to be earned at a rate of not less than one and 17 one-half times but not exceeding twice the regular rate. 18 The bill applies to tax years beginning on or after January 19 1, 2026. 20 -1- LSB 1748YH (5) 91 jm/jh 1/ 1