To amend the Internal Revenue Code of 1986 to exclude overtime pay from gross income.

Amends the Internal Revenue Code to allow individual taxpayers an exclusion from gross income for overtime pay.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4845 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4845

To amend the Internal Revenue Code of 1986 to exclude overtime pay from 
                             gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2007

 Ms. Fallin (for herself, Mrs. Blackburn, Mr. Poe, Mrs. Bachmann, Mr. 
Walberg, Mr. Reynolds, Mr. Carter, Mr. Burgess, Mr. Franks of Arizona, 
 Ms. Foxx, Mr. Price of Georgia, and Mr. Cole of Oklahoma) 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 pay from 
                             gross income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION OF OVERTIME PAY FROM GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139A the 
following new section:

``SEC. 139B. OVERTIME PAY.

    ``(a) In General.--Gross income shall not include any compensation 
required to be paid under section 7(a) of the Fair Labor Standards Act 
of 1938 for work in excess of the maximum hours set forth in such 
section.
    ``(b) Exception for Collective Bargaining Agreements.--Subsection 
(a) shall not apply to any compensation received pursuant to 1 or more 
collective bargaining agreements between employee representatives and 1 
or more employers.
    ``(c) Treatment as Wages for Employment Taxes, etc.--Compensation 
described in subsection (a) shall not fail to be treated as wages for 
purposes of this title merely because such compensation is excludible 
from gross income under subsection (a).''.
    (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 139A the following new item:

``Sec. 139B. Overtime pay.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2007.
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