Bill Text: CA SB946 | 2023-2024 | Regular Session | Amended
Bill Title: Personal Income Tax Law: Corporation Tax Law: exclusions: wildfire mitigation payments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-03 - Referred to Com. on REV. & TAX. [SB946 Detail]
Download: California-2023-SB946-Amended.html
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Amended
IN
Senate
April 29, 2024 |
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Amended
IN
Senate
March 14, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 946
| Introduced by Senator McGuire |
January 18, 2024 |
An act to add and repeal Sections 17138.7 and 24308.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 946, as amended, McGuire.
Personal Income Tax Law: Corporation Tax Law: exclusions: wildfire mitigation payments.
The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill would, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, provide an exclusion from gross income for amounts received by a qualified taxpayer, as defined, as a California qualified wildfire loss mitigation payment, as defined.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals 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 take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17138.7 is added to the Revenue and Taxation Code, to read:17138.7.
(a) For taxable years beginning on or after January 1, 2024, and before January 1, 2029, gross income shall not include any amount received by a qualified taxpayer as a California qualified wildfire loss mitigation payment.(b) For purposes of this section, the following definitions apply:
(1) “California qualified wildfire loss mitigation payment” means any amount which is received through the California Wildfire Mitigation Financial Assistance Program under Article 16.5 (commencing with Section 8654.2) of Chapter 7 of
Division 1 of Title 2 of the Government Code for the benefit of a residential property owner or occupant with expenses paid, or obligations incurred, for wildfire loss mitigation.
(2) “Qualified taxpayer” means a taxpayer that owns a structure on real property located in a designated wildfire hazard area, as defined in Section 8654.6 of the Government Code, if the California Wildfire Mitigation Financial Assistance Program performs wildfire loss mitigation on that property.
(2)
(3) “Wildfire loss mitigation” means an activity that reduces wildfire risks to a residential structure or its contents, or both.
(c) (1) For the purpose of complying with Section 41, as it relates to the tax exclusion provided by this section and Section 24308.10, the Legislature finds and declares the following:
(A) The specific goal, purpose, and objective of the tax exclusion is to provide relief to qualifying property owners in high fire areas who participate in the California Wildfire Mitigation Financial Assistance Program pursuant to Section 8654.2 of the Government Code.
(B) The performance indicators for the Legislature to use in determining if the exclusion achieves the stated goal,
purpose, and objective shall be the number of qualified taxpayers that excluded qualified amounts from gross income, and the aggregate amount of funds distributed from the California Wildfire Mitigation Financial Assistance Program.
(2) (A) No later than December 1, 2029, the Franchise Tax Board joint powers authority created pursuant to Section 8654.4 of the Government Code shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing, to the extent data is available, the number of qualified taxpayers that excluded amounts from gross income pursuant to this section and Section 24308.10, and the aggregate
amount of funds distributed from the California Wildfire Mitigation Financial Assistance Mitigation Program.
(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542.
(d) This section shall remain in effect only until December 1,
2029, and as of that date is repealed.
SEC. 2.
Section 24308.10 is added to the Revenue and Taxation Code, to read:24308.10.
(a) For taxable years beginning on or after January 1, 2024, and before January 1, 2029, gross income shall not include any amount received by a qualified taxpayer as a California qualified wildfire loss mitigation payment.(b) For purposes of this section, the following definitions apply:
(1) “California qualified wildfire loss mitigation payment” means any amount which is received through the California Wildfire Mitigation Financial Assistance Program under Article 16.5 (commencing with Section 8654.2) of
Chapter 7 of Division 1 of Title 2 of the Government Code for the benefit of a residential property owner or occupant with expenses paid, or obligations incurred, for wildfire loss mitigation.
(2) “Qualified taxpayer” means a taxpayer that owns a structure on real property located in a designated wildfire hazard area, as defined in Section 8654.6 of the Government Code, if the California Wildfire Mitigation Financial Assistance Program performs wildfire loss mitigation on that property.
(2)
(3) “Wildfire loss mitigation” means an activity that reduces wildfire risks to a residential structure or its contents, or both.
(c) This section shall remain in effect only until December 1, 2029, and as of that date is repealed.
