Bill > AB755

This bill establishes a tax income exclusion for individuals and businesses affected by disasters in California between 2025 and 2035. Specifically, the legislation allows "qualified taxpayers" who have experienced property damage or uninhabitability due to a disaster to exclude up to $300,000 of income from their state taxes during the year of the disaster and the following year. A qualified taxpayer includes property owners, residents, or business owners whose real property, residential dwelling, or business location was burned or deemed uninhabitable due to a federally defined disaster. The bill defines a "disaster" according to existing government code and requires taxpayers to provide necessary documentation to the Franchise Tax Board when requested. The primary goal of this legislation is to provide financial relief to disaster victims by alleviating their state tax burden, allowing them to focus on recovery and rebuilding. The tax exclusion is set to expire on December 1, 2035, and applies to both personal and corporate income tax returns. By providing this temporary tax relief, the bill aims to support Californians during challenging times of natural disaster recovery.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB755