Personal Income Tax Law: exclusions: reparations programs.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Enrolled
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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 in California’s personal income tax law for reparations benefits and payments. Starting in 2027, taxpayers receiving reparations – defined broadly as monetary payments related to programs addressing past harms – will not have these payments included in their gross income. This exclusion will remain in effect through December 2032 and is intended to ensure that reparations payments are not reduced by state income taxes.
Key provisions
- Excludes reparations benefits and payments from gross income.
- The exclusion applies to payments received between January 1, 2027, and December 1, 2032.
- ‘Reparations’ is defined broadly to include various government programs and compensation types.
- The bill includes additional requirements for authorizing new tax expenditures.
- The bill takes effect immediately as a tax levy.
Who is affected
- Taxpayers
- Individuals receiving reparations benefits
- Government agencies administering reparations programs
Notable changes
- Introduces a specific exclusion for reparations payments within the state income tax code.
- Expands the definition of ‘reparations’ to encompass a wide range of governmental initiatives.
Fiscal impact
None
Bill text
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Sponsors
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3 on record
Primary sponsor
Cosponsors
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