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AB 1124

Personal Income Tax Law: exclusions: first responders: overtime pay.

2025-2026 Regular Session Introduced by Jasmeet Bains

AB 1124 excludes first responder overtime pay from California state income tax, providing tax relief to firefighters, police, and emergency medical personnel earning compensation above regular hours.

In committee: Set, first hearing. Hearing canceled at the request of author.
#personalincometaxlaw #exclusions #firstresponders #overtimepay
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WeVote Research Nonpartisan
Bill Summary · AB 1124

Legislative bill overview

AB 1124 proposes to exclude overtime pay earned by first responders (firefighters, police, emergency medical personnel) from California state income tax calculations. The bill would create a targeted tax exemption specifically for compensation above regular hours worked by these public safety employees.

Why is this important

First responders often work significant overtime, and this exemption could provide meaningful tax relief to workers in physically demanding, often lower-paid public sector roles. The fiscal impact on California's general fund would depend on the number of eligible first responders claiming the exclusion, potentially reducing state tax revenue while affecting compensation competitiveness for recruitment and retention in these critical positions.

Potential points of contention

  • Revenue impact: Reducing state income tax revenue without offsetting cuts or new revenue sources could affect budget allocations to education, healthcare, and social services
  • Equity concerns: Creating targeted tax benefits for specific occupations raises questions about fairness to other essential workers (teachers, nurses, social workers) and whether tax policy should be used for wage supplementation
  • Definition and scope: The bill's precise definition of "first responders" and which overtime situations qualify could create administrative complexity and disputes over eligibility

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

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