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: 2026-06-03
Official status: Referred to Com. on REV. & TAX.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on how the additional requirements for tax expenditures will be enforced, leaving this as an open question.

Tax Exclusion for Reparations Payments

AB-2186 excludes reparations benefits and payments from personal income taxes for certain years, starting in 2027.

What This Bill Does

Excludes reparations benefits or payments from a person's gross income for tax years beginning on or after January 1, 2027, until December 31, 2031.

Who It Names or Affects

People who receive reparations benefits or payments in the years covered by the bill.

Terms To Know

reparations benefit or payment: Money given to people as part of a program meant to make up for past wrongs.
tax expenditure: A reduction in tax revenue that results from excluding certain types of income, like reparations payments, from being taxed.

Limits and Unknowns

The bill does not specify what happens after December 31, 2031.
It is unclear how the new requirements for tax expenditures will be enforced.

Bill History

2026-06-03 California Legislative Information
Referred to Com. on REV. & TAX.
2026-05-27 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-05-26 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 17.)
2026-05-19 California Legislative Information
Read second time. Ordered to third reading.
2026-05-18 California Legislative Information
Read second time and amended. Ordered returned to second reading.
2026-05-14 California Legislative Information
From committee: Amend, and do pass as amended. (Ayes 11. Noes 4.) (May 14).
2026-05-14 California Legislative Information
Joint Rule 62(a), file notice suspended.
2026-05-13 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2026-04-28 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27). Re-referred to Com. on APPR.
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.
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.

Current Bill Text

Read the full stored bill text

Download Bill PDF