California Assembly supports tax incentives for law enforcement pensions and retail security upgrades

The California Assembly Revenue and Taxation Committee convened on March 24, 2025, to discuss several significant legislative proposals aimed at supporting law enforcement and addressing retail crime.

One of the primary topics was Assembly Bill 814, which seeks to exempt law enforcement pensions from state income tax. Proponents argue that this measure could help retain retired peace officers in California, as over 27,000 have moved out of state after retirement. Supporters, including various police associations, emphasized that retaining these officers would enhance community safety and bolster local economies. The bill aims to address recruitment and retention challenges faced by law enforcement agencies, which have reported difficulties in filling positions.

Another key discussion centered on Assembly Bill 918, which proposes a targeted income tax exemption for local first responders deployed for mutual aid during declared emergencies. This bill aims to alleviate financial burdens on first responders who often leave their communities to assist in disaster situations. Advocates highlighted the increasing frequency and severity of natural disasters in California, stressing the need for a robust mutual aid system. The bill is designed to encourage participation in these critical efforts by providing financial support to first responders.

Additionally, Assembly Bill 976 was introduced to establish a tax credit program for small retailers in disadvantaged communities that purchase or install security equipment. This initiative responds to a surge in retail crime, which has adversely affected small businesses and their employees. Supporters of the bill noted that many small retailers struggle to afford necessary security measures due to high upfront costs. The proposed tax credit aims to help these businesses protect their assets and ensure the safety of their customers and employees.

The committee heard strong support for all three bills, with various law enforcement and business organizations voicing their backing. No opposition was noted during the discussions, indicating a consensus on the importance of these measures. The committee plans to revisit these bills in future sessions, as they are currently referred to the suspense file for further consideration.

Overall, the discussions highlighted the California Assembly's commitment to enhancing public safety and supporting law enforcement and small businesses amid ongoing challenges related to crime and community safety.