S. 4580

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4580 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4580

To amend the Internal Revenue Code of 1986 to provide that overtime pay 
provided to certain border patrol agents is qualified overtime 
compensation.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 20, 2026

Mr. Cornyn introduced the following bill; which was read twice and 
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to provide that overtime pay 
provided to certain border patrol agents is qualified overtime 
compensation.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``No Tax on Border Patrol Agent 
Overtime Act''.

SEC. 2. QUALIFIED OVERTIME COMPENSATION FOR BORDER PATROL AGENTS.

(a) In General.--Section 225(c)(1) of the Internal Revenue Code of 
1986 is amended to read as follows:
``(1) In general.--For purposes of this section, the term 
`qualified overtime compensation' means--
``(A) overtime compensation paid to an individual 
required under section 7 of the Fair Labor Standards 
Act of 1938 that is in excess of the regular rate (as 
used in such section) at which such individual is 
employed, or
``(B) amounts paid to a border patrol agent (as 
defined in subsection (a) of section 5550 of title 5, 
United States Code), other than the hazardous duty pay 
payable under subsection (c)(3) of such section, that 
are in excess of the rate of basic pay that would be in 
effect for such border patrol agent if the rate of 
basic pay of such border patrol agent were determined 
without regard to such section, including--
``(i) the supplemental pay described in 
subsection (b)(2) of such section,
``(ii) the supplemental pay described in 
subsection (b)(3) of such section,
``(iii) premium pay payable under 
subsection (c)(1) of such section, and
``(iv) pay for overtime work payable under 
section 5542(g) of such title.''.
(b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.
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