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Bill

S 3914

Subtracts from federal adjusted gross income any overtime compensation earned by an individual

2025 Regular Session Introduced by George Borrello and 16 co-sponsors

Bill S 3914 aimed to exempt overtime pay from federal taxable income, providing tax relief to workers and encouraging more overtime hours, but it was defeated in committee.

DEFEATED IN BUDGET AND REVENUE
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WeVote Research Nonpartisan
Bill Summary · S 3914

Summary of Bill S 3914

Bill Information

  • Bill Number: S 3914
  • Title: Subtracts from federal adjusted gross income any overtime compensation earned by an individual
  • Status: Defeated in Budget and Revenue
  • Introduced: January 30, 2025
  • Classification: Bill

Purpose and Intent

Bill S 3914 aimed to provide tax relief to individuals by allowing them to subtract any overtime compensation earned from their federal adjusted gross income (AGI). The intent behind this legislation was to alleviate the tax burden on workers who earn overtime pay, thereby encouraging more individuals to work additional hours without facing increased tax liabilities.

Key Provisions

  • Overtime Compensation Exemption: The primary provision of the bill was to exclude overtime compensation from the calculation of federal adjusted gross income. This means that individuals who earn overtime would not have to report that income when determining their taxable income, potentially lowering their overall tax liability.

Impact

  • Affected Individuals: The bill would have primarily benefited workers who regularly earn overtime pay, including those in various sectors such as healthcare, manufacturing, and service industries. By reducing the taxable income for these individuals, the bill sought to increase their disposable income.

  • Economic Implications: Proponents argued that this measure could incentivize more workers to take on overtime hours, potentially leading to increased productivity and economic growth. However, opponents raised concerns about the potential loss of tax revenue for state and federal governments.

Legislative Actions

  • Introduced: The bill was introduced on January 30, 2025, and referred to the Budget and Revenue Committee for consideration.
  • Committee Consideration: A notice for committee consideration was requested on March 17, 2025.
  • Outcome: The bill was ultimately defeated in the Budget and Revenue Committee on May 28, 2025, and did not progress further in the legislative process.

Related Bills

  • A 8965: This bill served as a companion to S 3914, likely proposing similar provisions regarding the treatment of overtime compensation for tax purposes.

In summary, while Bill S 3914 aimed to provide tax relief for individuals earning overtime, it was ultimately defeated in committee, preventing any changes to the current tax treatment of overtime compensation.

Compiled from official sources — confirm details with the bill’s official record.

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