Details of Public Law 117-328, section 309 , Exclusion of Certain Disability-Related First Responder Retirement Payments

Under RTC sections 17501 and 24601, California automatically conforms to the federal changes made to Part I of Subchapter D of Chapter 1 of Subtitle A of the Internal Revenue Code. As a result, to the extent the disability retirement payments are not taxable under this Part of the Internal Revenue Code, those federal provisions automatically apply under California law.

However, California conforms, under the PITL, relating to items that are specifically excluded from gross income in RTC section 17131, as of the “specified date” of 1/1/2015. California does not conform to the gross income exclusion for disability retirement payments for first responders and these payments would be taxable.

23/24 24/25 25/26 26/27 27/28 N/A N/A N/A ($12,000,000) ($21,000,000)