Plain English Breakdown
The official text uses the phrase 'as defined' and 'as specified,' indicating that detailed definitions exist in other parts of the law not included here.
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 calculation of gross income for state taxes.
- Applies only to 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 required information about goals, performance indicators, and data collection for this new tax expenditure.
Who It Names or Affects
- Qualified taxpayers who earn overtime wages related to emergency operations
- State agencies that collect personal income taxes
Terms To Know
- Gross Income
- Income from any source, except for amounts specifically excluded by law.
- Qualified Taxpayer
- A person who meets the specific definition in the law to receive this tax benefit.
- Tax Expenditure
- A special rule that lowers taxes for certain people or groups, which requires goals and data collection under existing law.
Limits and Unknowns
- The provided text does not define exactly who counts as a 'qualified taxpayer' beyond the general term.
- The specific details of what constitutes an 'emergency operation' are referenced but not listed in this summary.
- While the bill passed the legislature, its final effective date depends on executive action which is not shown here.