Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates tax breaks for California residents and businesses affected by wildfires. It allows homeowners and renters who received insurance proceeds due to wildfire damage to exclude those amounts from their taxable income, starting in 2023 and continuing through 2028. A subsequent section extends this exclusion to 2030, applying to insurance proceeds from homeowner’s or renter’s policies for damages resulting from a declared state of emergency due to a wildfire. The bill also requires the Franchise Tax Board to track and report on the use of these exclusions.
Key provisions
- Provides an exclusion from gross income for qualified insurance proceeds received due to wildfire damage (2023-2028).
- Expands the exclusion to include homeowner’s and renter’s insurance proceeds for declared state of emergency wildfires (2025-2030).
- Defines ‘qualified taxpayer’ as homeowners, renters, or businesses with a place of business in a wildfire-affected area.
- Requires settlement entities to provide documentation of settlement payments to the Franchise Tax Board.
- Mandates the Franchise Tax Board to report on the number of taxpayers utilizing the exclusion and the total value of excluded proceeds.
- Includes findings and declarations regarding the purpose of the exclusion and its impact on wildfire-affected communities.
- Sets deadlines for reporting requirements to the Legislature.
Who is affected
Bill text
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Sponsors
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1 on record
Primary sponsor
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