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AB 429

Personal Income Tax Law: Corporation Tax Law: exclusions: wildfires.

2025-2026 Regular Session Introduced by Megan Dahle and 2 co-sponsors

AB 429 would exclude wildfire losses from California income and corporate tax calculations, providing tax relief to affected individuals and businesses while reducing state revenue.

Referred to Com. on REV. & TAX.
#corporationtaxlaw #personalincometaxlaw #exclusions #wildfires
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WeVote Research Nonpartisan
Bill Summary · AB 429

Legislative bill overview

AB 429 proposes to exclude wildfire-related losses or damages from California's personal income tax and corporation tax calculations. The bill passed the Assembly unanimously and is currently in the Senate's Revenue and Taxation Committee. The specific mechanism of the exclusion and its fiscal scope remain to be detailed as the bill moves through committee review.

Why is this important

California experiences increasingly destructive wildfires, and this bill would provide tax relief to individuals and businesses suffering fire-related losses. Tax exclusions can meaningfully reduce the financial burden on affected taxpayers during recovery, though they also reduce state tax revenue. Given California's budget constraints and wildfire frequency, the cost and scope of such exclusions have significant fiscal implications.

Potential points of contention

  • Fiscal impact: The state legislature will need to quantify how much revenue this exclusion costs and whether it's sustainable given California's budget priorities
  • Scope and definitions: Determining what qualifies as "wildfire-related" losses (property, business interruption, relocation costs) and whether exclusions apply to all taxpayers or specific categories
  • Equity concerns: Whether tax relief should also apply to non-wildfire disasters (floods, earthquakes) or if wildfire-specific treatment creates unequal treatment across disaster types

Compiled from official sources — confirm details with the bill’s official record.

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