{"AmendmentNumber":"418","ParentBillNumber":"S3178","Bill":null,"Sponsor":{"Id":"RCF0","Name":"Ryan C. Fattman","Type":1,"Details":"https://malegislature.gov/api/GeneralCourts/194/LegislativeMembers/RCF0","ResponseDate":"2026-07-23T16:38:32.38"},"Category":null,"Action":"Rejected","RollCall":[{"GeneralCourtNumber":194,"Branch":"Senate","RollCallNumber":210,"Details":"https://malegislature.gov/api/GeneralCourts/194/Branches/Senate/RollCalls/210"}],"Title":"Overtime Income Tax Repeal","Branch":"Senate","RedraftNumber":1,"IsFurther":false,"GeneralCourtNumber":194,"Text":"Messrs. Fattman, Tarr and O'Connor move that the proposed new text be amended by inserting after section _ the following section:-\r\n\"SECTION _. 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.\r\nFor 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.\r\nIn 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.\r\nThe 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.\r\nAnd moves to further amend by inserting after section 62 the following section:-\r\nSECTION 62A. Paragraph (2) of subsection (a) of section 2 of chapter 62 of the General Laws, as most recently amended by section 3 of chapter 65 of the acts of 2026, is hereby amended by adding the following subparagraph:-\r\n(S) An amount not to exceed $25,000 in the form of tips or gratuities that would be includible in gross income for such taxable year; provided, that for purposes of this subparagraph, “tips” or “gratuities” shall mean voluntary cash or non-cash amounts received by an employee from a customer or patron, whether received directly or distributed through an employer, consistent with the definition of tips under applicable provisions of the Internal Revenue Code and federal regulations; provided further, that. in the case of a married couple filing a joint return, each spouse with qualifying income in the form of tips or gratuities shall be entitled to a separate exclusion under this subparagraph; and provided further, that the commissioner of revenue shall promulgate such rules and regulations as are necessary to implement this subparagraph, including provisions to prevent abuse or improper characterization of income as tips\"; and by inserting after section 164 the following section:-\r\nSECTION 164A. Section 62A shall take effect for the taxable year beginning on or after January 1, 2027.”\r\n"}