California AB2186 excludes reparations benefits from state income tax for five years.

California AB2186 amends the Revenue and Taxation Code to exclude reparations benefits from state income tax for taxpayers beginning in 2028 and ending in 2032. A "reparations benefit or payment" includes any monetary compensation provided by federal, state, local, tribal, or territorial governments for past or ongoing harms, discrimination, injustice, or inequitable treatment. This exclusion aims to ensure reparations fulfill their intended purpose by avoiding partial recapture through state income tax. The provision is set to expire on December 1, 2033.

California AB2186 excludes reparations benefits from state income tax for five years.

California AB2186 amends the Revenue and Taxation Code to exclude reparations benefits from state income tax for taxpayers beginning in 2028 and ending in 2032. A "reparations benefit or payment" includes any monetary compensation provided by federal, state, local, tribal, or territorial governments for past or ongoing harms, discrimination, injustice, or inequitable treatment. This exclusion aims to ensure reparations fulfill their intended purpose by avoiding partial recapture through state income tax. The provision is set to expire on December 1, 2033.