California Moves to Exclude Wildfire Payouts From State Tax

Property owners could exclude payments from state income tax for losses due to recent wildfires tied to Pacific Gas and Electric Co. and Southern California Edison under two bills sent to Gov. Gavin Newsom.

One bill (A.B. 1249) excludes payments from a wildfire victims trust fund established during PG&E’s bankruptcy proceedings. The bill by Assemblyman James Gallagher (R) would apply to payments for losses from the 2015 Butte Fire, the 2017 North Bay fires, and the 2018 Camp Fire in Northern California.

The $13.5 billion settlement fund is part of a bankruptcy plan approved in federal ...