Sen. Steven Choi proposes bills for wildfire victim tax relief and prevention incentives

California State Senator Steven Choi (37th District) has introduced two legislative measures aimed at providing financial relief and incentives for residents impacted by recent Southern California wildfires.

On February 4, Choi’s office announced the introduction of Senate Bill 268 (SB 268), which proposes exempting wildfire-related settlement payments from state income tax for individuals in designated disaster areas.

Under SB 268, financial compensation received by wildfire victims—such as insurance payouts, legal settlements, and other damage-related reimbursements—would not be considered taxable income by the state of California. This exemption aims to alleviate the financial burden on those struggling to recover from property and asset losses due to wildfires.

Additionally, Senate Bill 269 (SB 269) seeks to encourage proactive wildfire prevention measures by providing state tax credits for fire prevention costs incurred by homeowners and property owners in wildfire-prone areas.

If enacted, SB 269 would apply to 2025 tax filings and would provide tax credits covering up to 50% of the costs associated with fire prevention efforts, including:

*Installation of fire-resistant infrastructure and equipment
*Property modifications to improve fire safety
*Removal of hazardous vegetation, trees, and dry brush
*Tax Credit Limits Based on Fire Risk Levels

The bill establishes tiered tax credit caps based on wildfire risk levels, with eligible residents receiving:

*Up to $2,500 for areas classified as Moderate Risk
*Up to $5,000 for areas classified as High Risk
*Up to $10,000 for areas classified as Very High Risk

These proposed measures reflect a growing effort to support California residents affected by wildfires, while also incentivizing preventative action to reduce future wildfire damage.

The bills will be reviewed in the coming legislative sessions. If passed, they would provide much-needed financial relief and long-term wildfire mitigation solutions for affected communities.