Over the last two years, three bills were enacted that allowed retroactive exclusions for various wildfire settlements received by certain wildfire victims from PG&E and Southern California Edison.
AB 1249 (Ch. 22-749) allows a retroactive exclusion for amounts paid to Butte and North Bay Fire victims for settlements paid out from the Fire Victim Trust established pursuant to the order of the United States Bankruptcy Court for the Northern District of California for fires that occurred in Butte in 2015 and in Butte, Lake, Mendocino, Napa, Solano, and Sonoma counties in 2017. (R&TC §§17138.6, 24309.1) We previously reported that settlements related to these fires were excluded but did not specify that the exclusion for settlements related to these fires is limited to those settlements paid from the Fire Victim Trust Fund. For closed tax years, taxpayers have until September 28, 2023, to file a refund claim.
SB 1246 (Ch. 22-841) allows a retroactive exclusion for all settlements received from Southern California Edison by qualified taxpayers in litigation with Southern California Edison related to the 2017 Thomas Fire and 2018 Woolsey Fire. (R&TC §§17139.2, 17139.3, 24309.6, 24309.7) For closed tax years, taxpayers have until September 28, 2023, to file a refund claim.
SB 131 (Ch. 23-55) allows a retroactive exclusion for all settlements received from PG&E to qualified taxpayers in Sonoma County related to the 2019 Kincade Fire and in Shasta or Tehama counties related to the 2020 Zogg Fire. (R&TC §§17139.2, 17139.3, 24309.6, 24309.7)