Chiquita Canyon Tax Relief Act
The Chiquita Canyon Tax Relief Act would exclude certain relief payments made to victims of the Chiquita Canyon elevated temperature landfill event from federal taxable income. Specifically, it designates these payments as “qualified disaster relief payments” under section 139(b) of the Internal Revenue Code, meaning recipients would not owe federal income tax on them. The payments targeted by the bill include compensation for losses, damages, relocation, expenses, real property value losses, or inconvenience, and must come from a government agency or Waste Connections, Inc. (including its subsidiaries, insurers, or agents, or a related person). The act defines the event as the elevated temperature landfill incident at the Chiquita Canyon Landfill in Los Angeles County, beginning May 1, 2022, and it applies to payments received on or after March 1, 2024. In short, it provides tax-free treatment for specified disaster-relief payments connected to this landfill incident.
Key Points
- 1Short title: The bill is named the “Chiquita Canyon Tax Relief Act.”
- 2Tax treatment: Chiquita Canyon elevated temperature landfill event payments are treated as qualified disaster relief payments under IRC section 139(b), making them excludable from gross income.
- 3Eligible payments: Payments for loss, damages, expenses, relocation, suffering, loss in real property value, closing costs (including real estate commissions), or inconvenience related to the event.
- 4Source of payments: Payments must come from a government agency (federal, state, or local) or from Waste Connections, Inc., or any subsidiary, insurer, agent, or related person.
- 5Covered event: The elevated temperature landfill event at the Chiquita Canyon Landfill in Los Angeles County, starting May 1, 2022.
- 6Effective date: The exclusion applies to amounts received on or after March 1, 2024.