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

Assembly Member Michelle Rodriguez's tax reform measure would exempt first responders' overtime wages earned during declared emergencies from California state income tax between 2025 and 2030. The exemption applies to overtime pay received for work performed directly responding to or supporting emergency operations in areas under official state or local emergency declarations.

To qualify for the tax exemption, first responders must either reside or work in a county covered by an emergency declaration, or be officially deployed to support emergency operations in an affected area. The Franchise Tax Board would establish verification procedures and documentation requirements to implement the exemption. According to the bill's findings, the measure aims to address the extraordinary circumstances faced by first responders during major disasters, though the legislature notes no data collection requirements are included.

The exemption contains a sunset provision, automatically repealing on December 1, 2030 unless extended by future legislation. As a tax levy, the measure would take effect immediately upon enactment rather than on January 1 of the following year.