AN ACT ESTABLISHING A TEMPORARY PERSONAL INCOME TAX DEDUCTION FOR TIPS OR GRATUITIES.

SB 66 would create a temporary tax deduction for workers who declare tips or gratuities on their income tax returns. It allows a deduction of up to $25,000 per year for tips earned during 2026-2028, reducing taxable income for affected workers. The deduction phases out for single filers with incomes over $150,000 and married couples filing jointly over $300,000. This policy directly impacts service industry workers who report tip income, lowering their tax burden for the specified period.