AB 454: Personal income taxes: exclusion: wrongfully incarcerated individuals.

The Personal Income Tax Law imposes a tax on taxpayers measured by the taxpayers taxable income for the taxable year, but excludes certain items of income from the computation of tax, including an exclusion for a specified amount received as compensation for having been the victim of a miscarriage of justice by a specific individual that was wrongfully convicted.

Various provisions of the Personal Income Tax Law conform, or conform as modified, to provisions of the Internal Revenue Code as of January 1, 2015. By law enacted December 18, 2015, the Internal Revenue Code excludes from gross income certain amounts received by wrongfully incarcerated individuals.

This bill would conform state law to that provision of the Internal Revenue Code. The bill would apply this conformity to taxable years beginning before, on, or after January 1, 2018. The bill would make legislative findings regarding the public purpose served by this bill.