Excluding overtime from the individual income tax, and including applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 12, 2025
2. ✕
   Stopped: SubcommitteeDied when the General Assembly ended
3. Next: House committeeFunnel: by February 20, 2026
4. Next: Passes the House
5. Next: Senate committeeFunnel: by March 20, 2026
6. Next: Passes the Senate
7. Next: To the Governor
8. Next: Signed into law

Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill excludes overtime pay from the individual income tax. The bill excludes from the individual income tax the portion of overtime compensation that is authorized pursuant to U.S.C. §207 to be earned at a rate of not less than one and one-half times but not exceeding twice the regular rate. The bill applies to tax years beginning on or after January 1, 2026.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text

Iowa Code it changes

Amends§422.7

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works