Bill > AB1057

This bill proposes a tax exemption for certain first responders' overtime wages earned during declared emergencies from 2025 to 2030. Specifically, the bill would exclude from gross income any "qualified overtime wages" earned by qualified taxpayers during state or local emergencies. Qualified taxpayers are defined as first responders (as defined in California Government Code) officially deployed in emergency operations, as well as emergency medical technicians, paramedics, and ambulance drivers employed by fire agencies who are officially deployed during emergencies. The overtime wages must be directly related to work performed in response to or in support of emergency operations in an area under a declared state of emergency. The bill aims to recognize and financially support first responders who work extraordinary hours during major disasters by providing them a tax break on their emergency-related overtime pay. The tax exemption will automatically expire on December 1, 2030, and the Franchise Tax Board is authorized to create guidelines and regulations for implementing this provision. The Legislature acknowledges that the goal is to address the exceptional circumstances faced by first responders during major disasters and provide financial recognition of their critical service during times of extreme public need.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1057