Relating to: an income tax subtraction for certain overtime compensation. (FE)

SB 454 creates a new income tax subtraction for Wisconsin taxpayers who earn qualified overtime compensation, directly affecting workers receiving overtime pay that meets federal tax definitions. It allows individuals to subtract up to $12,500 (or $25,000 for joint filers) of qualifying overtime income from their taxable income each year. The benefit phases out for higher earners: for single filers, the subtraction decreases by $100 for every $1,000 their modified federal adjusted gross income exceeds $150,000, and for joint filers, the threshold is $300,000. The bill specifies that "qualified overtime" excludes tips and aligns with federal definitions under the Internal Revenue Code.