AN ACT ESTABLISHING PERSONAL INCOME TAX DEDUCTIONS FOR TIPS OR GRATUITIES AND OVERTIME PAY.

HB 5087 would create a state-level personal income tax deduction for taxpayers who earn tips or overtime pay, mirroring the existing federal tax treatment for these income types. It directly affects workers in service industries (like restaurants or hospitality) who receive tips or earn overtime, as well as other earners with these income streams. The bill would amend tax law to allow these specific income categories to be deducted when calculating taxable income, similar to how they are treated federally. This policy change simplifies tax filing for affected workers by aligning state deductions with federal rules.