Excludes settlement payments from taxable income for taxpayers affected by the 2026 Garden Grove chemical leak.

California AB760 adds provisions to the Revenue and Taxation Code to exclude settlement payments from taxable income for taxpayers affected by the 2026 Garden Grove chemical leak. This exclusion applies to qualified taxpayers who owned property or had a business in Orange County during the leak and received settlement payments from a settlement entity. The exclusion is effective for taxable years beginning on or after January 1, 2027, and before January 1, 2032. The bill also mandates the Franchise Tax Board to report on the aggregate dollar amount of settlement payments by November 1, 2029.

Excludes settlement payments from taxable income for taxpayers affected by the 2026 Garden Grove chemical leak.

California AB760 adds provisions to the Revenue and Taxation Code to exclude settlement payments from taxable income for taxpayers affected by the 2026 Garden Grove chemical leak. This exclusion applies to qualified taxpayers who owned property or had a business in Orange County during the leak and received settlement payments from a settlement entity. The exclusion is effective for taxable years beginning on or after January 1, 2027, and before January 1, 2032. The bill also mandates the Franchise Tax Board to report on the aggregate dollar amount of settlement payments by November 1, 2029.