Assemblywoman Tina McKinnor (D–Inglewood) today announced the introduction of AB 2186, legislation to ensure that future federal, state, or local reparations benefits provided to eligible recipients are not subject to state income taxes.
“For generations, descendants of formerly enslaved people have been denied both justice and economic opportunity,” said McKinnor. “Reparations are meant to repair harm — not be partially taken back through taxation.”
AB 2186 would exclude reparations benefits from California personal income tax for taxable years beginning on or after Jan. 1, 2027, through Jan. 1, 2032. The bill broadly defines reparations benefits to include monetary payments, grants, trust distributions, debt forgiveness, and other forms of financial compensation provided through state, local, or federal reparations programs.
Currently, reparations payments could be treated as taxable income under California law, potentially reducing the financial impact intended for recipients. This undermines the purpose of reparations programs, which are designed to provide meaningful redress for historic and systemic injustices.
“California is actively preparing for the implementation of reparations programs,” McKinnor added. “We must ensure that recipients receive the full benefit of these efforts. This bill sends a clear message: California is committed to justice, accountability, true repair, and lower taxes for hard working residents.”
With bipartisan calls from Republicans and Democrats demanding tax relief for hard-working Californians, AB 2186 furthers voter demand to cut taxes and make California an affordable place to call home.
AB 2186 will be considered by the State Assembly this spring.