AB-2186 • 2026

Personal Income Tax Law: exclusions: reparations programs.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: McKinnor
Last action: 2026-04-13
Official status: In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
Effective date: Not listed

Plain English Breakdown

The bill summary text mentions a nonsubstantive change related to pharmacy regulations, but it does not provide details that would support the claim made in the candidate explanation. Therefore, this part was removed.

Excluding Reparations Payments from Personal Income Tax

AB-2186 excludes reparations benefits and payments from personal income tax for a specific period and requires detailed information about new tax expenditures.

What This Bill Does

For taxable years beginning on or after January 1, 2027, and before January 1, 2032, it removes reparations benefits or payments from gross income that people have to pay taxes on.
It requires any bill authorizing a new tax expenditure to include specific goals, purposes, objectives, detailed performance indicators, and data collection requirements.

Who It Names or Affects

People who receive reparations payments
Taxpayers in California

Terms To Know

reparations benefits or payments: Money given to people as part of a program meant to make up for past wrongs.
tax levy: A law that allows the government to collect taxes.

Limits and Unknowns

The bill only excludes reparations payments from income tax for a limited time, from January 1, 2027, until December 31, 2031.
It does not specify how the government will track and report on these new tax breaks.

Bill History

2026-04-13 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-03-17 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-03-16 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2026-03-16 California Legislative Information
Referred to Com. on REV. & TAX.
2026-02-20 California Legislative Information
From printer. May be heard in committee March 22.
2026-02-19 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2186, as amended, McKinnor.
Pharmacy.
Personal Income Tax Law: exclusions: reparations programs.
The Personal Income Tax Law, in modified conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would exclude from gross income any reparations benefit or payment, as defined, received by a taxpayer during the taxable year.
Existing law requires any bill
authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Existing law, the Pharmacy Law, establishes the California State Board of Pharmacy to license and regulate the practice of pharmacy. Existing law prohibits a person or entity from dispensing or furnishing dangerous drugs or dangerous devices on the internet for delivery to any person in this state without a prescription issued pursuant to an appropriate prior examination of the human or animal for whom the prescription is meant if the person or entity either knew or reasonably should have known that the prescription was not issued pursuant to an appropriate prior examination of the human or animal, or if the person or entity did not act in accordance with specified regulations.
This bill would make a nonsubstantive change to those provisions.

Current Bill Text

Read the full stored bill text

Download Bill PDF