No Tax on Border Patrol Agent Overtime Act
HB8917, titled the "No Tax on Border Patrol Agent Overtime Act," would amend the Internal Revenue Code to treat certain overtime-related payments to border patrol agents as "qualified overtime compensation." Under the bill, amounts paid to border patrol agents that exceed their regular basic pay, including specified supplemental pay, premium pay, and overtime work pay, would be included in the category of compensation eligible for the tax treatment already provided for qualified overtime compensation under section 225 of the tax code.
The bill is narrowly focused on border patrol agents as defined in title 5 of the U.S. Code and excludes hazardous duty pay from the new treatment. It would apply to taxable years beginning after December 31, 2025, meaning the change would affect future tax years rather than prior earnings. In practical terms, the measure would reduce federal income tax liability on qualifying overtime-related compensation for covered agents.
If enacted, the bill would amend section 225(c)(1) of the Internal Revenue Code of 1986 to expand the definition of qualified overtime compensation to include certain payments made to border patrol agents. This would affect federal tax administration and the taxable income of covered employees by excluding qualifying overtime-related amounts from ordinary income treatment under the specified provision. The bill does not change border patrol pay rules themselves, but it changes how certain pay components are treated for tax purposes.
Based on the bill title and the absence of recorded committee debate or votes in the provided materials, the measure appears to be presented as a targeted tax relief bill for border patrol agents. The available context suggests a generally supportive framing from its sponsors, with the policy goal of ensuring that overtime compensation for these agents is not taxed in the same way as ordinary wages. No formal opposition, amendments, or recorded vote outcomes are included in the provided record.
The main policy issue is the narrow, occupation-specific tax preference for border patrol agents, which may raise questions about whether similar treatment should be extended to other federal employees or public safety personnel who also receive overtime or premium pay. Another possible point of contention is the exclusion of hazardous duty pay from the definition, which could be viewed as limiting the scope of relief. Because the bill was only referred to the House Committee on Ways and Means and no hearing transcript or vote is provided, there is no documented in-record dispute, but the targeted nature of the tax benefit is the most likely area for debate.