Amendment #1231 to H5500

Supporting Overtime Workers through Income Tax Relief

Mr. Boldyga of Southwick moves to amend the bill by adding the following section:

"SECTION XXXX. Notwithstanding any special or general law to the contrary, for taxable years beginning on January 1, 2027, an amount not to exceed $12,500 of income received by a taxpayer during the taxable year as compensation for overtime work shall be excluded from Massachusetts gross income, as defined in chapter 62 of the General Laws.

For purposes of this section, “overtime work” shall mean hours worked in excess of 40 hours in a workweek, or such other threshold as may be established under applicable provisions of the Internal Revenue Code, the Fair Labor Standards Act, or other federal or state law, for which compensation is paid at a rate greater than the employee’s regular rate of pay.

In the case of a married couple filing a joint return, each spouse shall be entitled to a separate exclusion under this section, provided that each spouse has qualifying overtime income.

The commissioner of revenue shall promulgate such rules and regulations as are necessary to implement this section, including provisions to ensure proper reporting and to prevent abuse or mischaracterization of income as overtime compensation."