CA AB159

Amends the existing tax exclusion for wildfire settlement payments to limit eligibility to "qualified wildfire disasters" defined as wildfires for which the Governor declared a state of emergency or the President declared a federal emergency or major disaster under the Stafford Act

Expands the definition of "settlement entity" from only class action settlement administrators to any entity making a settlement payment to a qualified taxpayer, broadening which wildfire settlements qualify for the tax exclusion

Applies to both personal income taxes and corporation taxes for taxable years from January 1, 2021, through December 31, 2029, with the provisions repealing on December 1, 2030

Appropriates $10,000 from the General Fund to the Franchise Tax Board to administer qualified wildfire disaster settlements

Requires a two-thirds legislative vote for passage because the definitional changes result in some taxpayers paying higher taxes compared to the previous broader exclusion