Bill > AB1124

This bill introduces a temporary tax exclusion for first responders' overtime wages during major disaster periods. Specifically, for tax years 2025 through 2029, the bill would exclude from gross income any "qualified overtime wages" earned by first responders in areas covered by a Presidential Major Disaster Declaration. A "qualified taxpayer" is defined as a first responder who either resides in, is employed in, or is officially deployed to a disaster-declared county. "Qualified overtime wages" are specifically those earned while directly responding to or supporting emergency operations during the disaster period and for 30 days after the declaration expires. The Franchise Tax Board is authorized to create rules and regulations for implementing this tax exclusion, which is designed to recognize and financially support first responders who provide critical services during extraordinary circumstances. The bill acknowledges that while the specific goal is to address the financial challenges faced by first responders during major disasters, there is no specific data collection mechanism for tracking this tax exclusion. The tax provision will automatically expire on December 1, 2030, effectively making it a time-limited tax benefit for first responders.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1124