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HR 405
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Keep Every Extra Penny Act of 2025

To amend the Internal Revenue Code of 1986 to exclude overtime compensation from gross income for purposes of the income tax.

Introduced Jan 15, 2025

Latest action (Jan 15, 2025) Referred to the House Committee on Ways and Means.

Referred to
Ways and Means Committee
Policy area
Taxation
Issues
Economy & Taxes

Summary
  • Excludes overtime compensation from taxable income under federal income tax law.
  • Applies to overtime pay required under the Fair Labor Standards Act of 1938.
  • The exclusion takes effect for overtime compensation received after the bill is enacted.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)
1 cosponsor

Actions (2)
  1. Jan 15, 2025 Referred to the House Committee on Ways and Means. · house
  2. Jan 15, 2025 Introduced in House

Text versions (1)
  • Introduced in House · Jan 15, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

IN THE HOUSE OF REPRESENTATIVES

January 15, 2025

Mr. Fulcher (for himself and Mr. Rulli) 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 exclude overtime compensation from gross income for purposes of the income tax.

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 “Keep Every Extra Penny Act of 2025”.

SEC. 2. EXCLUSION OF OVERTIME COMPENSATION FROM GROSS INCOME.

(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:

“SEC. 139J. OVERTIME COMPENSATION.

“Gross income shall not include overtime compensation required under section 7 of the Fair Labor Standards Act of 1938.”.

(b) Clerical Amendment.—The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:

“Sec. 139J. Overtime compensation.”.

(c) Effective Date.—The amendments made by this section shall apply to amounts received after the date of the enactment of this Act. <all>

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