17139.4.
(a) For taxable years beginning on or after January 1, 2022, and before January 1, 2029, 2027, gross income does not include any qualified amount received by a qualified taxpayer.(b) For purposes of this section:
(1) “Qualified amount” means any amount received in settlement by a qualified taxpayer from a settlement entity in connection with the 2021 Dixie Fire or the 2022 Mill Fire.
(2) “Qualified taxpayer” means any of the following:
(A) In relation to the 2021 Dixie Fire, the following:
(i) Any taxpayer that owned real property located in the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
(ii) Any taxpayer that resided within the County of
Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
(iii) Any taxpayer that had a place of business within the County of Butte, Plumas, Lassen, Shasta, or Tehama during the 2021 Dixie Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2021 Dixie Fire.
(B) In relation to the 2022 Mill Fire, the following:
(i) Any taxpayer that owned real property located in the County of Siskiyou during the 2022 Mill
Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
(ii) Any taxpayer that resided within the County of Siskiyou during the 2022 Mill Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
(iii) Any taxpayer that had a place of business within the County of Siskiyou during the 2022 Mill Fire who paid or incurred expenses and received amounts from a settlement arising out of or pursuant to the 2022 Mill Fire.
(3) “Settlement entity” means the following:
(A) In relation to the 2021 Dixie Fire, Pacific Gas and Electric Company
or its subsidiary making the settlement payment to a qualified taxpayer.
(B) In relation to the 2022 Mill Fire, Roseburg Forest Products or its subsidiary or agent making the settlement payment to a qualified taxpayer.
(c) The settlement entity shall provide, upon request by the Franchise Tax Board, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board.
(d) (1) For the purpose of complying with Section 41 in regards to the exclusion provided by this section and Section
24309.8, the Legislature finds and declares as follows:
(A) The specific goal, purpose, and objective of the tax exclusion is to provide essential relief to individuals who have suffered injury, loss, inconvenience, and expenses resulting from the devastating 2021 Dixie Fire and 2022 Mill Fire.
(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 settlement payments arising out of the 2021 Dixie Fire or the 2022 Mill Fire.
(2) (A) On December 1, 2028,
2027, the Franchise Tax Board shall deliver to the Legislature a written report that includes both of the following:
(i) To the extent feasible, the number of qualified taxpayers that excluded qualified amounts from gross income, as a result of the exclusion.
(ii) The aggregate amount of those settlement payments arising out of the 2021 Dixie Fire or the 2022 Mill Fire.
(B) The report required by this paragraph shall be delivered to the Legislature in compliance with Section 9795 of the Government Code.
(C) The
disclosure provisions of this subdivision shall be treated as an exception to Section 19542.
(e) This section shall remain in effect only until December 1, 2029, 2027, and as of that date is repealed.