Income tax: exclusion: disasters.
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 an exclusion from California state income tax for individuals and businesses affected by disasters. Specifically, qualified taxpayers who have experienced damage to their real property, residence, or business due to a disaster (as defined by state law) during a calendar year and the following calendar year may exclude up to $300,000 of income received during those two years from their taxable income. The exclusion applies from January 1, 2025, through December 1, 2035.
Key provisions
- Provides an income tax exclusion for qualified taxpayers.
- The exclusion applies to income received due to a disaster.
- The maximum exclusion amount is $300,000 per taxable year.
- The exclusion applies to taxpayers who own damaged property, reside in a damaged area, or operate a business in a damaged area.
- The disaster must have occurred and been deemed uninhabitable during the year and the following year.
- The exclusion is in effect from January 1, 2025, to December 1, 2035.
- Requires qualified taxpayers to provide information to the Franchise Tax Board upon request.
- Includes a finding and declaration regarding the goal of alleviating financial burdens for disaster victims.
Who is affected
- Taxpayers
- Homeowners
- Business Owners
- Individuals affected by natural disasters
- California Residents
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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