Plain English Breakdown
The effective date is listed as 'immediately' but applies to taxable years starting January 1, 2025; no specific calendar year of enactment is confirmed in the text.
Tax Exclusion for First Responders Providing Mutual Aid
For taxable years from January 1, 2025, to December 31, 2029, this law excludes certain wages earned by first responders providing mutual aid outside their normal jurisdiction from gross income.
What This Bill Does
- Excludes qualified wages of a qualified first responder from gross income for taxable years beginning on or after January 1, 2025, and before January 1, 2030.
- Defines qualified wages as pay earned by first responders when providing mutual aid to an area outside their normal jurisdiction.
- Limits the tax exclusion only to employees of local public agencies.
- Includes required goals, performance indicators, and data collection details for this new tax expenditure.
Who It Names or Affects
- First responders who are employees of local public agencies providing mutual aid outside their normal jurisdiction.
Terms To Know
- Gross income
- Income from whatever source derived, except as specifically excluded by law for computing tax liability.
- Mutual aid
- Assistance provided to an area outside a first responder's normal jurisdiction.
Limits and Unknowns
- The exclusion only applies to wages earned for work done outside the first responder's normal jurisdiction.
- The law does not apply to taxable years before January 1, 2025, or on and after January 1, 2030.