Personal Income Tax Law: exclusions: first responders.

Assembly Member Ransom's proposal to exclude mutual aid wages from first responders' taxable income would create a five-year tax benefit for emergency personnel who assist during disasters outside their normal jurisdiction. The exclusion would apply to wages earned by local public agency first responders when providing mutual aid services in areas under declared state or local emergencies between January 2025 and January 2030.

The bill defines qualified wages as compensation earned specifically for work performed outside a first responder's regular service area during declared emergencies. Wages earned within their normal jurisdiction or for routine mutual aid arrangements would not qualify for the exclusion. The Franchise Tax Board would establish verification procedures and documentation requirements to implement the program.

According to the bill's legislative findings, this tax modification addresses the extraordinary circumstances faced by first responders during major disasters. The measure includes a sunset provision that would automatically repeal the exclusion on December 1, 2030. While the bill requires no direct appropriations, it would take effect immediately upon enactment as a tax levy under California law.