California has enacted legislation clarifying that the exclusion from gross income for wildfire settlement amounts applies to amounts received in connection with a qualified wildfire disaster in California. “Qualified wildfire disaster” is defined to mean any disaster arising from a wildfire for which the Governor of California has declared a state of emergency, or for which the President of the United States has declared an emergency or a major disaster. The exclusion applies retroactively for taxable years beginning on or after January 1, 2021, and before January 1, 2030. Ch. 112 (S.B. 159), Laws 2025, effective September 17, 2025, and applicable as noted