Exclude Tax Payments from the Chiquita Canyon Landfill
If you received money in 2024 from the Community Relief Fund operated by the Chiquita Canyon Landfill, you may be able to exclude those funds from your income on your state taxes.
In July, the tax budget trailer bill (SB 132) was signed into law, which included language from my bill, The Chiquita Canyon Tax Relief Act (AB 27), to exempt taxes on any money received from the Chiquita Canyon Landfill or any government entity, beginning tax year 2024 until 2029. This includes any compensation for relocation or expenses that you may receive in the future through the 2028 tax year.
If you have already submitted your taxes, you can visit the Franchise Tax Board’s (FTB) website at ftb.ca.gov for information on how to file an amended return by doing the following:
- Select “File”
- Select “After you file” in the lefthand column
- Select “Amend an Income Tax Return” under “Correct your return”.
This will bring you to the list of forms required to amend your current year’s filings.
If you have not submitted your taxes yet, information and instructions on how to list the exclusion on your taxes can now be found in the FTB 2024 Supplemental Guidelines to California Adjustments (FTB Publication 1001). To find the publication on the FTB website, go to ftb.ca.gov then:
- Select “Forms”
- Select “Search Online”
- In the search bar for Form Number and/or Keywords type “1001”
This will bring you to a webpage you can type in your email to receive the form. Within the form details on how to account for the income in your return are in the Other Income/Loss section.
Item:
Chiquita Canyon elevated temperature landfill event exclusion
Differences Between Federal and California Law:
California law allows an exclusion from gross income for any Chiquita Canyon elevated temperature landfill event payment amount received by a taxpayer.
What to do for California:
If any qualified amount was included as income for federal purposes, enter this amount on Schedule CA (540), Part I or Schedule CA (540NR), Part II, line 8z, column B.
If you have a tax consultant, ask them for advice and guidance. However, for additional assistance, you may also visit ftb.ca.gov for free tax help by selecting “Help” and then selecting “Get free tax help” in the lefthand column.
If you are experiencing difficulties reaching the Franchise Tax Board or need assistance in locating the appropriate form, feel free to reach out to my office at (661) 286-1565 or navigate to the Help with State Agencies page on my office’s website.