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

HF 1024 proposes to exclude overtime pay from the individual income tax in Iowa. This bill directly affects individuals who earn compensation at a rate of one and a half times their regular pay by allowing them to subtract this income from their taxable earnings. The bill amends the state's tax code to implement this exclusion. If enacted, these provisions would apply to tax years beginning on or after January 1, 2026.