September 12, 2013

Bill to eliminate tax deductions for punitive damages appears to be dead

It appears that the proposed bill to prevent California taxpayers from deducting punitive damages as business expenses (AB 458), which passed in the California Assembly in July, will not see a floor vote in the Senate.  The Daily Journal (subscription required) is reporting that Sen. Ron Calderon, who had been backing the bill in the Senate, has withdrawn his support.  Calderon's move comes just days before the legislative session ends on September 13.  His decision to abandon the bill may have something to do with the fact that the California Chamber of Commerce and the Civil Justice Association of California both announced their opposition to the bill late last week.

A similar bill, AB 1276, failed on the Assembly floor in 2011.

Related posts:

Assembly approves bill to prevent tax deduction of punitive damages; Senate not expected to act until August

Committee on Appropriations approves bill to prohibit deductions of punitive damages

Another proposal to prohibit California taxpayers from deducting punitive damages

Assembly rejects proposal to eliminate tax deductions for punitive damages

Proposed California bill would prevent tax deductions for punitive damages