Bill > S1128

Introduced Session

This bill disallows tax deductions under the corporation business tax and the gross income tax for punitive damages paid or incurred in connection with a judgment in or settlement of a legal action and includes in a taxpayer's taxable income the amount paid to, or on behalf of, the taxpayer as insurance or otherwise by reason of the taxpayer's liability or agreement to pay punitive damages. Under current law, a corporation or an individual business owner may deduct the cost of court-ordered punitive damages as an "ordinary business expense." This tax loophole allows companies to wreak horrible damage to public assets and private property, destroying lives and livelihoods, and write it off as a cost of doing business. This bill eliminates that tax break, and requires corporations risking environmental destruction to face the true costs of their actions.

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John McKeon (D)*, 

Introduced in the Senate, Referred to Senate Judiciary Committee (on 01/09/2024)

Official Document