Income taxes: exclusions: wildfire loss mitigation payments.
What changed between versions
The tax exclusion period is extended from taxable years beginning before January 1, 2029, to before January 1, 2031, in both the personal income tax (Section 17138.8) and corporation tax (Section 24308.10) provisions. The sunset/repeal date is correspondingly extended from December 1, 2029, to December 1, 2031.
The definition of 'California qualified wildfire loss mitigation payment' is expanded from covering only amounts received through the California Wildfire Mitigation Financial Assistance Program (limited to residential property owners or occupants) to also include a wildfire mitigation grant program under Section 91510 of the Public Resources Code. The new definition covers 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.
A new reporting requirement is added requiring the Office of Emergency Services to submit a report to the Legislature by December 1, 2031, detailing the aggregate amount of funds distributed from the Section 91510 wildfire mitigation grant program and the number of individuals or entities who may be eligible for the income tax exclusion.
A new appropriation of $10,000 from the General Fund to the Office of Emergency Services is added to fund compliance with the new reporting requirements.
The legislative findings on goals and performance indicators are expanded to reference both the California Wildfire Mitigation Financial Assistance Program and the Section 91510 wildfire mitigation grant program, broadening the scope of what the tax exclusion is intended to achieve and measure.