Bill > AB918

This bill introduces a tax exemption for qualified first responders who provide mutual aid during state or local emergencies. Specifically, for tax years 2025-2030, the bill would exclude from gross income the wages earned by local agency first responders when they provide personnel, equipment, or other resources to areas outside their normal jurisdiction during a declared state of emergency or local emergency. The bill defines "qualified wages" as those earned specifically for work performed in an emergency area, and explicitly excludes wages from work within the responder's usual jurisdiction. First responders are defined according to existing government code, and the bill limits the tax exemption to employees of local agencies. The Franchise Tax Board is authorized to create rules and guidelines for implementing this tax exclusion, and the provision will automatically expire on December 1, 2030. The Legislature notes that the goal of this tax exclusion is to recognize and support first responders who provide critical service during extraordinary circumstances and major disasters. The bill takes effect immediately as a tax levy.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB918