HF360 • 2026

A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: COOLING
Last action: 2025-02-12
Official status: Introduced, referred to Ways and Means. H.J. 305 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

What This Bill Does

A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-02-12 Iowa Legislature
Introduced, referred to Ways and Means. H.J. 305 .

Official Summary Text

A bill for an act excluding overtime from the individual income tax, and including applicability provisions.

Current Bill Text

Read the full stored bill text

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