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AB-1124 • 2026

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

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
Bains
Last action
2026-02-02
Official status
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the amount of tax savings this exclusion will generate for first responders.

Tax Break for First Responders' Overtime

AB-1124 excludes first responders' overtime pay from their gross income for tax purposes, starting in 2025 and lasting until 2029.

What This Bill Does

  • Excludes certain overtime wages from the gross income of qualified taxpayers who are first responders.
  • Defines 'qualified taxpayer' as someone working directly in response to or supporting emergency operations.
  • Specifies that this exclusion applies only for taxable years starting on or after January 1, 2025, and before January 1, 2030.

Who It Names or Affects

  • First responders who earn overtime pay during emergency operations.

Terms To Know

Qualified taxpayer
A first responder working directly in response to or supporting emergency operations.
Gross income
Total income before taxes and other deductions are taken out.

Limits and Unknowns

  • The bill only applies for a specific period from January 1, 2025 to December 31, 2029.
  • It does not specify the exact amount of tax savings this exclusion will provide.

Bill History

  1. 2026-02-02 California Legislative Information

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. 2026-01-31 California Legislative Information

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. 2025-03-24 California Legislative Information

    In committee: Set, first hearing. Hearing canceled at the request of author.

  4. 2025-03-10 California Legislative Information

    Referred to Com. on REV. & TAX.

  5. 2025-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  6. 2025-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 1124, as introduced, Bains.
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, for 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