H.R. 8917: No Tax on Border Patrol Agent Overtime Act

This bill, titled the No Tax on Border Patrol Agent Overtime Act, proposes changes to the Internal Revenue Code of 1986 with the intention of exempting certain overtime compensation paid to border patrol agents from being taxed. Below are the key provisions of the bill:

Key Provisions

• Definition of Qualified Overtime Compensation: The bill defines "qualified overtime compensation" specifically for border patrol agents. This includes:
  • Overtime compensation that exceeds the regular pay rate established under the Fair Labor Standards Act.
  • Additional amounts paid to border patrol agents above their basic pay, excluding hazardous duty pay, which consists of various types of supplemental pay and premium pay.
• Types of Pay Included: The bill specifies that the following types of pay qualify for this tax exemption:
  • Supplemental pay described in specific subsections of the existing code.
  • Premium pay for extraordinary duties.
  • Pay for overtime work as defined in another part of the code.
• Effective Date: The changes proposed in this bill would apply to taxable years starting after December 31, 2025. This means any applicable compensation received by border patrol agents in 2026 and beyond would be under the new tax rules.

Impact

The aim of the bill is to provide financial relief to border patrol agents by ensuring that their overtime pay is not subject to federal income taxation, potentially increasing their take-home pay. The legislation could influence compensation structures for border patrol agents regarding how overtime and additional pay are calculated and reported.

Relevant Companies