Newsom Signs Bill Extending Automatic Disaster Loss Deduction

A California law allowing disaster victims to claim losses automatically on their tax returns is extended through 2028 under a bill signed by Gov. Gavin Newsom.

The bill (S.B. 264) by state Sen. Roger Niello (R) applies to all disasters declared by the governor, allowing automatic deductions for personal or corporate income taxes. The bill was signed Saturday.

• It extends a law first enacted in 2015 creating the automatic deduction rather than requiring lawmakers to enact legislation for each declared disaster.
• The law takes effect Jan. 1, 2024.