AB-1057 • 2026

Personal Income Tax Law: exclusions: first responders: overtime pay.

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Michelle Rodriguez (A) , Bains
Last action: 2025-06-05
Official status: From committee: Without further action pursuant to Joint Rule 62(a).
Effective date: Not listed

Plain English Breakdown

The official source does not specify whether the exclusion applies exclusively to overtime pay received during emergency periods, leaving some uncertainty about the exact scope of 'qualified overtime wages'.

Tax Break for First Responders' Overtime

AB-1057 excludes certain first responders' overtime pay from their gross income for tax purposes, starting in 2025.

What This Bill Does

Excludes qualified first responders' overtime wages from their gross income for tax years beginning on or after January 1, 2025.
Defines 'qualified taxpayer' as a person who works directly in response to or support of emergency operations.

Who It Names or Affects

First responders who work overtime during emergencies and receive additional pay for it.

Terms To Know

Qualified taxpayer: A first responder working directly in response to or support of emergency operations.
Gross income: Total income from all sources before taxes and other deductions are taken out.

Limits and Unknowns

The exclusion applies only for taxable years starting on or after January 1, 2025, and ending before January 1, 2030.
It is unclear which specific first responder roles qualify under this bill.

Bill History

2025-06-05 California Legislative Information
From committee: Without further action pursuant to Joint Rule 62(a).
2025-05-05 California Legislative Information
In committee: Set, final hearing. Held under submission.
2025-04-29 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-07 California Legislative Information
In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
2025-03-27 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-26 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-03-24 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-03-10 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2025-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1057, as amended, Michelle Rodriguez.
Personal Income Tax Law: exclusions: first responders: overtime pay.
The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability.
This bill would, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, exclude from the gross income of a qualified taxpayer, as defined, qualified overtime wages, defined to mean overtime wages paid to a qualified taxpayer in relation to work performed directly in response to, or in support of, emergency operations, as specified.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed
performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF