No Tax on Overtime Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 3118 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 3118 To amend the Internal Revenue Code of 1986 to allow a deduction for qualified overtime compensation. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 30, 2025 Mr. Moran introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to allow a deduction for qualified overtime compensation. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``No Tax on Overtime Act''. SEC. 2. NO TAX ON OVERTIME. (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: ``SEC. 224. QUALIFIED OVERTIME COMPENSATION. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year. ``(b) Limitations.-- ``(1) Maximum hours.--For purposes of determining the amount of the deduction allowed under subsection (a), the amount of qualified overtime compensation taken into account under subsection (a) for any taxable year shall not exceed the amount of such compensation which relates to not more than 300 hours of service. ``(2) Joint returns.--In the case of a joint return, paragraphs (1) and (2) shall be applied separately with respect to the qualified overtime compensation of each spouse. ``(3) Phaseout based on modified adjusted gross income.-- The amount of the deduction under subsection (a) (after the application of paragraphs (1), (2), and (3)) shall be reduced by $100 for every $1,000 by which the modified adjusted gross