CA SB268

Excludes from state income tax any settlement payments received by qualified taxpayers to replace property damaged or destroyed by disasters or accidental/human-caused events for which a state of emergency or local emergency was proclaimed

Applies to taxable years beginning on or after January 1, 2025, and before January 1, 2030, with provisions repealing on December 1, 2030

Qualified taxpayers include property owners, residents, and businesses located in areas damaged by such disasters who incurred expenses and received settlement payments from class action settlement entities

Settlement entities must provide documentation of payments to the Franchise Tax Board upon request, in the form and manner determined by the Board

Takes effect immediately as a tax levy; introduced by Senator Choi with bipartisan coauthors from both chambers