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Bill

AB 918

Personal Income Tax Law: exclusions: first responders.

2025-2026 Regular Session Introduced by Rhodesia Ransom

AB 918 excludes first responders' income from California personal income tax, reducing state revenue while improving compensation for police, firefighters, and paramedics.

In committee: Set, second hearing. Held under submission.
#personalincometaxlaw #exclusions #firstresponders
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WeVote Research Nonpartisan
Bill Summary · AB 918

Legislative bill overview

AB 918 proposes to exclude first responders' income from California's personal income tax. The bill has been introduced but remains in the early committee stage, with its specific provisions and tax exclusion scope still under legislative review.

Why is this important

First responders (firefighters, police, paramedics, etc.) face physical danger and trauma in their work, and tax exclusions could improve compensation competitiveness and retention. However, this would reduce state tax revenue, requiring either spending cuts or tax increases elsewhere to maintain state services and budget balance.

Potential points of contention

  • Revenue impact: Excludes income from taxation, which reduces state tax revenue without identified funding sources or offset mechanisms
  • Scope definition: Unclear which workers qualify as "first responders" and whether the exclusion applies to all income or specific compensation types (base salary vs. hazard pay)
  • Equity concerns: Creates preferential tax treatment for one occupational group, raising questions about similar treatment for other essential workers (teachers, nurses, public works staff)

Compiled from official sources — confirm details with the bill’s official record.

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