Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.

Plain English Breakdown

The bill summary does not provide specific details about additional information required for any bill authorizing a new tax expenditure.

Wildfire Insurance Exclusions from Taxes

AB-376 excludes certain wildfire-related insurance payments from personal and corporate income taxes for specific years.

What This Bill Does

• Excludes amounts received by taxpayers due to wildfires from their gross income for tax years starting in 2023 through 2027.
• Defines 'qualified insurance proceeds' as money received under homeowner or renter insurance policies for damages and expenses caused by fires declared as emergencies by the Governor.
• Provides an exclusion from gross income for any amount received by a qualified taxpayer, as defined, as qualified insurance proceeds for tax years starting in 2025 through 2029.

Who It Names or Affects

• Taxpayers who receive insurance payments due to wildfires declared as emergencies by the Governor.
• Individuals and corporations that file personal or corporate income taxes.

Terms To Know

Gross Income

Total income before any deductions or exclusions are applied for tax purposes.

Qualified Insurance Proceeds

Money received from homeowner’s or renter’s insurance policies due to damages and expenses caused by wildfires declared as emergencies.

Limits and Unknowns

• The bill only applies to wildfire-related insurance payments for specific years.
• It does not cover all types of income or losses, just those specifically related to wildfires and defined in the bill.

Official Summary Text

AB 376, as amended, Tangipa.
Personal Income Tax Law: exclusions: insurance proceeds: wildfires.
Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.
The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill would, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, provide an exclusion from gross income for a qualified taxpayer, as defined, for amounts received for costs and losses associated with wildfires, as provided.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure
will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would make findings and declarations related to a gift of public funds.
The Personal Income Tax Law, in conformity with federal income tax law, generally 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, 2025, and before January 1, 2030, would provide an exclusion from gross income for any amount received by a qualified taxpayer, as defined, as qualified insurance proceeds. The bill would define qualified insurance proceeds for this purpose to mean any amount received under a homeowner’s insurance policy or a renter’s insurance policy for damages or expenses resulting from a fire occurring in an area that is proclaimed by the Governor to be in a state of emergency.
Existing law requires a bill
authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill 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

Download Bill PDF