Bill > SB1

This bill introduces a state income tax exclusion for military service retirees and surviving spouses in California, specifically allowing qualified taxpayers to exclude up to $20,000 of retirement pay from federal military service and Department of Defense Survivor Benefit Plan annuity payments from their gross income for tax years 2025-2034. Eligibility is based on income limits, with single individuals allowed up to $125,000 in adjusted gross income and joint-filing surviving spouses allowed up to $250,000. The bill aims to honor veterans' service, provide financial relief, and incentivize skilled military retirees to remain in or retire to California by reducing their state tax burden. The legislation recognizes the significant contributions of uniformed service members, including those from non-combat services like the Public Health Service and NOAA Commissioned Officer Corps, and seeks to support military families by easing their tax obligations. Notably, the bill initially included comprehensive reporting requirements to track the impact of these tax exclusions, but the final version removes these detailed data collection provisions, stating that no available data exists to collect or report. The bill takes effect immediately as a tax levy and is part of a broader effort to attract and retain skilled veterans in the state's workforce.

Budget and Finance, Military Affairs and Security

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1