No Tax on Border Patrol Agent Overtime Act

This Act may be cited as the “No Tax on Border Patrol Agent Overtime Act”.

(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.