AB-918 • 2026

Personal Income Tax Law: exclusions: first responders.

Labor Taxes

Passed Legislature

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

Sponsor: Ransom
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 bill summary text indicates that the bill would take effect immediately as a tax levy, but there is no specific effective date provided in the metadata or other official source material.

Tax Breaks for First Responders

AB-918 excludes certain wages earned by first responders providing mutual aid outside their normal jurisdiction from personal income taxes, benefiting employees of local public agencies.

What This Bill Does

Excludes qualified wages of first responders providing mutual aid outside their usual area from gross income for tax purposes starting in 2025 and ending before 2030.
Defines 'qualified wages' as the pay earned by first responders when they help areas beyond their normal jurisdiction.
Limits this exclusion to employees working for local public agencies.

Who It Names or Affects

First responders who provide mutual aid outside their usual area and are employed by local public agencies.

Terms To Know

Qualified Wages: Wages earned by first responders when they help areas beyond their normal jurisdiction.
Mutual Aid: When first responders from one area go to another area to provide assistance during emergencies or other situations.

Limits and Unknowns

The exclusion only applies for taxable years starting on or after January 1, 2025 and before January 1, 2030.
It does not apply to first responders who are not employed by local public agencies.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-05 California Legislative Information
In committee: Set, second hearing. Held under submission.
2025-03-24 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2025-03-10 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-20 California Legislative Information
From printer. May be heard in committee March 22.
2025-02-19 California Legislative Information
Read first time. To print.

Official Summary Text

AB 918, as introduced, Ransom.
Personal Income Tax Law: exclusions: first responders.
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 gross income the qualified wages of a qualified first responder. The bill would define qualified wages for this purpose to mean wages earned by first responders pursuant to the provision of mutual aid to an area outside of their normal jurisdiction, and would limit the exclusion to employees of local public agencies.
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