Bill > AB97

This bill provides a tax exclusion for individuals and businesses affected by the 2020 Bobcat Fire in Los Angeles County, allowing them to exclude certain settlement payments from their gross income for state tax purposes between January 1, 2024, and January 1, 2029. A "qualified taxpayer" includes property owners, residents, and business owners within Los Angeles County who received settlement payments from Southern California Edison related to fire-related expenses. The bill requires the settlement entity to provide documentation to the Franchise Tax Board and mandates that the board submit a report to the Legislature by December 1, 2029, detailing the number of taxpayers who claimed the exclusion and the total amount of settlement payments. The legislation aims to provide financial relief to those impacted by the devastating wildfire and is designed as an urgency statute to take immediate effect, helping affected individuals and businesses recover more quickly by reducing their tax burden. The bill includes specific performance indicators to track the effectiveness of the tax exclusion and explicitly states that it does not constitute a gift of public funds.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB97