Plain English Breakdown
The official text mentions definitions are 'as defined' and operations are 'as specified,' but does not provide those specific lists within the provided excerpts.
Tax Exclusion for First Responder Overtime Pay
For taxable years from January 1, 2025, to December 31, 2029, this law excludes certain overtime wages earned by qualified taxpayers during emergency operations from their gross income.
What This Bill Does
- Excludes qualified overtime wages from the gross income of a qualified taxpayer for taxable years beginning on or after January 1, 2025, and before January 1, 2030.
- Defines qualified overtime wages as pay earned in relation to work performed directly in response to, or in support of, emergency operations.
- Includes specific goals, performance indicators, and data collection requirements required for new tax expenditures.
Who It Names or Affects
- Qualified taxpayers who receive overtime wages related to specified emergency operations.
- State agencies responsible for administering the Personal Income Tax Law.
Terms To Know
- Gross Income
- Income from any source, except amounts specifically excluded by law when calculating tax liability.
- Tax Expenditure
- A reduction in taxes authorized by a bill that must include specific goals and performance indicators under existing state law.
Limits and Unknowns
- The provided text states the definitions for 'qualified taxpayer' and 'emergency operations' are specified elsewhere but does not list those details.
- While the exclusion applies to tax years starting in 2025, no specific calendar date is listed as the effective date of enactment.