California Wildfire Victims to Get Income Tax Relief in New Law

California Gov. Gavin Newsom (D) signed a bill Wednesday that exempts settlements for wildfire damage from the state’s income tax.

The bill (S.B. 159) was part of a budget trailer bill that legislators pushed through at the very end of their session. It expanded the scope of similar efforts introduced earlier to apply the exemption to a wider swath of disasters.

• The exemption will apply retroactively starting Jan. 1, 2021 and run until the end of 2029, covering any wildfire where the governor or president declares a state of emergency.
• The bill passed the assembly 69-1 on ...