S 3914 New York Senate · 2025 Regular Session

Reduces federal adjusted gross income by any overtime compensation earned by an individual

This bill would reduce taxable income for individuals by excluding overtime pay from federal adjusted gross income. Specifically, it creates a new tax provision allowing workers to subtract wages earned for hours beyond their normal schedule (defined as "overtime compensation") from their taxable income. The change would apply to all taxpayers earning overtime pay, effectively lowering their federal income tax liability for that income. The provision would take effect for tax years beginning January 1, 2026.

Bill status failed 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 30, 2025 Last action Mar 24, 2026

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What changed between versions

S3914 → S3914A · 4 edits

MODERATE

The bill was amended to add detailed eligibility criteria for overtime compensation deductions, clarifying that only overtime paid under specific collective bargaining agreements qualifies. This change narrows the scope of who can claim the deduction to workers with formal agreements guaranteeing at least 40 hours per week.

Scope change

The bill's applicability was narrowed from all overtime compensation to only overtime paid under specific collective bargaining agreements meeting strict hour and timing requirements.

ELIGIBILITY

Added requirements that overtime compensation must be paid under a pre-existing collective bargaining agreement between employer and employee or labor organization.

Added requirement that the agreement must specify a standard work period of at least 40 hours per seven-day period.

Added special provisions for employees covered by the Railway Labor Act with specific duty hour requirements.

DEFINITION

Modified the definition of qualifying overtime to exclude casual or ad-hoc overtime payments that do not meet the agreement requirements.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 24, 2026

Upper · Passed

PRINT NUMBER 3914A

upper

Mar 24, 2026

Upper · Passed

AMEND AND RECOMMIT TO BUDGET AND REVENUE

upper

Mar 19, 2026

Upper · Passed

NOTICE OF COMMITTEE CONSIDERATION - REQUESTED

upper

Jan 7, 2026

Committee

REFERRED TO BUDGET AND REVENUE

upper

Mar 17, 2025

Upper · Passed

NOTICE OF COMMITTEE CONSIDERATION - REQUESTED

upper

Jan 30, 2025

Committee

REFERRED TO BUDGET AND REVENUE

upper

1 primary · 19 co-sponsors