As we’ve discussed in earlier posts on this site, for most taxpayers, the settlements from PG&E will be partially or fully taxable. However, relief from California tax may be coming via AB1249.
What is AB1249?
- AB1249 would exclude the PG&E settlement money from gross income for California income tax purposes (Note: it would still be taxable to the Feds). This treatment would be awarded to victims of the 2015 Butte Fire, the 2017 North Bay Fires, and the 2018 Camp Fire.
What is the status of AB1249?
- The bill passed the Assembly in February 2022.
- The bill passed the Senate Finance committee on 6/1/22 and was sent to Appropriations.
- I spoke to the Senate Appropriations committee analyst in early June and he said that the bill will be a Suspense candidate so it will get final consideration when they take up their Suspense file (around 400ish bills) which will likely be on August 11th or 12th.
- So August is the soonest that this bill will be passed.