This bill introduces a new section to the Income Tax Act that allows first responder retirees and their unmarried surviving spouses to claim a tax deduction on their retirement income. Specifically, the deduction is set at fifty percent of the retirement pay earned for service as a first responder, which includes law enforcement officers, firefighters, and emergency medical services personnel. To qualify for this deduction, taxpayers must provide necessary information to the department to establish their eligibility and report the deduction amount as required.

The provisions of this act will take effect for taxable years beginning on or after January 1, 2026. Additionally, the bill mandates that the deduction be included in the tax expenditure budget, which will detail the annual aggregate cost of the deduction.