CA SB1004

Excludes settlement payments from gross income for qualified taxpayers in wildfire-damaged areas for taxable years beginning January 1, 2024 through December 31, 2028.

Defines qualified taxpayers as those who own real property, reside, or operate a business in wildfire-damaged areas and received settlement amounts for expenses from the wildfire.

Requires settlement entities to provide documentation of payments to the Franchise Tax Board upon request.

Mandates the Franchise Tax Board to report to the Legislature by November 1, 2027 and annually thereafter on the number of qualified taxpayers and aggregate settlement amounts excluded from income.

Takes effect immediately as a tax levy and repeals on December 1, 2029.