House adopts overtime‑income tax deduction and a two‑month grocery sales‑tax holiday

The House passed HB 527 after a daylong floor session that included amendments and extended debate over the fiscal impact of a proposed grocery‑tax pause.

Representative Lomax explained the bill provides a state deduction for qualified overtime up to $1,000 annually for taxable years beginning Jan. 1, 2026, through Dec. 31, 2028. "It provides relief for the employees that need it," he said.

Representative Lans offered an amendment to increase the $1,000 cap to $5,000, which the sponsor and others said would cost the Education Trust Fund about $190 million; the body tabled that amendment. Representative Shaw won adoption of a floor amendment to add a two‑month grocery sales‑tax holiday, May 1–June 30, intended as targeted relief for families. The fiscal note cited a one‑time $46 million cost for the two‑month holiday; supporters said the temporary break could test the case for larger reductions later.

Debate focused on impact: some lawmakers argued two months is a modest but meaningful near‑term relief, others said timing and the modest size of the overtime deduction limit the bill’s effectiveness and urged permanent or broader measures (such as eliminating the grocery tax). Several members pressed for guardrails and dynamic scoring to understand long‑term revenue effects.

The House adopted the committee substitute, tabled higher‑cost amendments, accepted the grocery‑holiday amendment, and gave final passage to HB 527 as substituted and amended (final recorded vote: 100 yeas, 0 nays).