Revenue and Taxation Code section 24309.2
(a)
For taxable years beginning on or after January 1, 2021, and before January 1, 2030, gross income shall not include any qualified amount received by a qualified taxpayer in the taxable year.(b)
For purposes of this section the following definitions apply:(1)
“Qualified amount” means any amount received from a settlement entity by a qualified taxpayer in connection with a wildfire in California.(2)
“Qualified taxpayer” means any of the following:(A)
Any taxpayer that owns real property located in an area damaged by a wildfire that paid or incurred expenses, and received amounts from a settlement entity, arising out of or pursuant to the wildfire.(B)
Any taxpayer that has a place of business within an area damaged by a wildfire that paid or incurred expenses, and received amounts from a settlement entity, arising out of or pursuant to the wildfire.(3)
“Settlement entity” means the entity, approved by a class action settlement administrator, making the settlement payment to a qualified taxpayer.(c)
The settlement entity shall provide, upon request by the Franchise Tax Board or qualified taxpayer, documentation of the settlement payments in the form and manner requested by the Franchise Tax Board or the qualified taxpayer.(d)
The qualified taxpayer shall provide, upon request, all necessary information in the form and manner prescribed by the Franchise Tax Board.(e)
This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
Source:
Section 24309.2, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=24309.2. (updated Jun. 27, 2025; accessed Jul. 14, 2025).
