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AB-814 • 2026

Personal Income Tax Law: exclusions: law enforcement retirement.

Personal Income Tax Law: exclusions: law enforcement retirement.

Crime Education Taxes
Passed Legislature

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

Sponsor
Schiavo
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 candidate explanation included a claim about limiting taxpayer information collection, which is not supported in the official source material. The bill does require data to be provided for reporting purposes but does not specify limitations on its use beyond what existing law already mandates.

Tax Exclusion for Law Enforcement Retirement

AB-814 excludes certain retirement payments from personal income taxes for law enforcement officers and their survivors.

What This Bill Does

  • Excludes qualified payments received by retired peace officers or their beneficiaries from gross income for tax purposes.
  • Defines qualified payments as amounts from pension plans based on service as a peace officer, or annuity payments to surviving spouses or dependents of deceased peace officers.
  • Requires the Franchise Tax Board to provide data requested by the Legislative Analyst’s Office for reporting purposes.

Who It Names or Affects

  • Retired law enforcement officers
  • Surviving spouses or dependents of deceased peace officers

Terms To Know

Gross income
Total income before any deductions or exclusions.

Limits and Unknowns

  • The bill only applies for taxable years from January 1, 2025, through December 31, 2029.
  • It does not specify the exact amount of tax savings for individuals affected by this change.

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. 2025-05-05 California Legislative Information

    In committee: Set, second hearing. Held under submission.

  4. 2025-03-24 California Legislative Information

    In committee: Set, first hearing. Referred to suspense file.

  5. 2025-03-10 California Legislative Information

    Referred to Com. on REV. & TAX.

  6. 2025-02-20 California Legislative Information

    From printer. May be heard in committee March 22.

  7. 2025-02-19 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 814, as introduced, Schiavo.
Personal Income Tax Law: exclusions: law enforcement retirement.
The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would exclude from gross income qualified payments received by a taxpayer during the taxable year. The bill would define qualified payments to mean either amounts received from a pension plan the taxpayer is the beneficiary of based on services performed as a peace officer, as defined, or amounts received as the beneficiary of an annuity plan set up for the surviving spouse or dependent of a person that lost their life in services as a peace officer, as specified.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure. The bill would require the Franchise Tax Board to provide any data requested by the Legislative Analyst’s Office to write the report, as provided, and would make taxpayer information received by the Legislative Analyst’s Office subject to specified law limiting the collection and use of that information, the violation of which is a crime. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text 
Download Bill PDF