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

Plain English Breakdown

The official source material does not provide details on the specific goals, purposes, or objectives that the tax expenditure will achieve.

Wildfire Loss Exclusion from Taxes

AB-429 excludes certain amounts received by taxpayers due to losses and costs related to specific wildfires in California from their gross income for tax purposes.

What This Bill Does

• Excludes from gross income the money received by people who suffered losses or incurred costs because of the Dixie Fire, Mill Fire, or Park Fire.
• This exclusion applies only to taxable years starting on or after January 1, 2022, and before January 1, 2027.

Who It Names or Affects

• People who suffered losses or incurred costs due to the Dixie Fire in Butte, Plumas, Lassen, Shasta, and Tehama counties.
• People affected by the Mill Fire in Siskiyou County.
• People impacted by the Park Fire in Butte and Tehama counties.

Terms To Know

Taxable Year

A period of time, usually one year, used to calculate taxes owed or tax refunds due.

Gross Income

Total income before any deductions are made for expenses or losses.

Limits and Unknowns

• The exclusion only applies to specific wildfires and certain counties in California.
• It is not clear how many people will benefit from this tax exclusion.

Official Summary Text

AB 429, as amended, Hadwick.
Personal Income Tax Law: Corporation Tax Law: exclusions: wildfires.
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, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would provide an exclusion from gross income for amounts received by a qualified taxpayer, as defined, in settlement for costs and losses associated with the 2021 Dixie Fire in the Counties of Butte, Plumas, Lassen, Shasta, and Tehama,
or
the 2022 Mill Fire in the County of Siskiyou,
or the 2024 Park Fire in the Counties of Butte and Tehama,
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.
The bill would make legislative findings and declarations related to a gift of public funds.
This bill would declare that it is to take effect immediately as an urgency statute.

Current Bill Text

Download Bill PDF