Personal Income Tax Law: Corporation Tax Law: Bobcat Fire: exclusions.

Taxes

Passed Legislature

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

Sponsor: Lackey
Last action: 2025-06-18
Official status: Referred to Com. on REV. & TAX.
Effective date: Not listed

Plain English Breakdown

The official source does not provide specific details on the number of individuals or businesses that will be impacted.

Tax Exclusion for Bobcat Fire Losses

AB-97 provides a tax exclusion for amounts received in settlement for costs and losses related to the 2020 Bobcat Fire in Los Angeles County, effective from January 1, 2024, until December 31, 2028.

What This Bill Does

Excludes from gross income any money received as settlement for costs and losses associated with the 2020 Bobcat Fire in Los Angeles County.
Applies this exclusion for tax years starting on or after January 1, 2024, until December 31, 2028.

Who It Names or Affects

People who suffered losses from the 2020 Bobcat Fire in Los Angeles County
Businesses that had costs or losses due to the 2020 Bobcat Fire in Los Angeles County

Terms To Know

Tax Exclusion: Money that is not counted as income for tax purposes.
Settlement: An agreement to resolve a dispute without going to court.

Limits and Unknowns

The bill only applies to the period from January 1, 2024, through December 31, 2028.
It is not clear how many people or businesses will be affected by this exclusion.

Bill History

2025-06-18 California Legislative Information
Referred to Com. on REV. & TAX.
2025-06-05 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-04 California Legislative Information
Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 2076.).
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-06 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.
2025-05-06 California Legislative Information
Coauthors revised.
2025-03-17 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-02-03 California Legislative Information
Referred to Com. on REV. & TAX.
2025-01-08 California Legislative Information
From printer. May be heard in committee February 7.
2025-01-07 California Legislative Information
Read first time. To print.

Official Summary Text

AB 97, as introduced, Lackey.
Personal Income Tax Law: Corporation Tax Law: Bobcat Fire: exclusions.
The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define “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, 2024, and before January 1, 2029, would provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received in settlement for costs and losses associated with the 2020 Bobcat Fire in the County of Los Angeles, 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.
This bill would declare that it is to take effect immediately as an urgency statute.

Current Bill Text

Read the full stored bill text

Download Bill PDF