AB 159: Personal Income Tax Law: Corporation Tax Law: exemptions: wildfire.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law establishes, in the Government Operations Agency, the Franchise Tax Board consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. Existing law prescribes various powers and duties to the Franchise Tax Board, including, among other things, the administration of state personal income taxes and corporation franchise and income taxes.

The Personal Income Tax Law, in conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from income, including, for taxable years beginning on or after January 1, 2021, and before January 1, 2030, an exclusion from income for any qualified taxpayer, as defined, for amounts received in settlement in connection with a wildfire in the state, as provided.

This bill would amend the definitions provided in that exclusion from tax and would limit the exclusion to qualified amounts made in connection with a qualified wildfire disaster, as defined.

This bill would also appropriate $10,000 from the General Fund to the Franchise Tax Board to administer qualified wildfire disaster settlements, as specified.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 13, 2025Ordered to inactive file at the request of Senator Grayson.
2. September 11, 2025Read second time. Ordered to third reading.
3. September 10, 2025From committee: Do pass. (Ayes 13. Noes 0.) (September 10).
4. September 8, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
5. September 8, 2025Senate Rule 29.3(b) suspended. (Ayes 28. Noes 8. Page 2568.)
6. April 2, 2025Referred to Com. on B. & F. R.
7. March 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.
8. March 20, 2025Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 742.)
9. March 18, 2025Read second time. Ordered to third reading.
10. March 17, 2025Ordered to second reading.
11. March 17, 2025Withdrawn from committee.
12. March 17, 2025(Ayes 53. Noes 17. Page 643.)