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This bill amends the Internal Revenue Code to allow workers to deduct qualified overtime compensation from their federal taxable income. Qualified overtime includes compensation paid at rates above an employee's regular rate under the Fair Labor Standards Act, as well as compensation above the regular rate paid pursuant to an agreement between employee and employer for work exceeding 40 hours per week or, for railway workers, beyond scheduled hours. The deduction would apply to taxable years beginning after December 31, 2024.
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