Income taxes: exclusions: wildfire loss mitigation payments.

The tax exclusion for wildfire loss mitigation payments is extended from taxable years before January 1, 2029 to before January 1, 2031, giving taxpayers two additional years of the benefit.

A new source of qualifying payments is added: the wildfire mitigation grant program under Section 91510 of the Public Resources Code, funded by $135 million in Proposition 4 bond proceeds available to the Office of Emergency Services.

The definition of 'California qualified wildfire loss mitigation payment' is broadened from any amount received through the existing program for residential property owners with expenses paid for wildfire loss mitigation to any grant, rebate, direct assistance, or other financial assistance for wildfire mitigation, home hardening, structure hardening, vegetation management, defensible space, fuel modification activities, or community wildfire resilience.

The joint powers authority must submit a report to the Legislature by December 1, 2029 detailing aggregate funds distributed from the existing program and the number of individuals potentially eligible for the tax exclusion.

The Office of Emergency Services must submit a report to the Legislature by December 1, 2031 detailing aggregate funds distributed from the new Proposition 4-funded grant program and the number of individuals or entities potentially eligible for the tax exclusion.

$10,000 is appropriated from the General Fund to the Office of Emergency Services to comply with the new reporting requirements.

The bill now takes effect immediately as a budget-related appropriation bill, whereas the original version had no specified effective date or appropriation.