CA Tax Loophole Benefits Oil and Gas Companies, Undermines Firefighting Revenue

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CA Tax Loophole Benefits Oil and Gas Companies, Undermines Firefighting Revenue
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The carcass of a burnt-out car is seen as home burns during the Eaton Fire in the Altadena area of Los Angeles County, California, on January 8, 2025.Fossil fuel companies are profiting off an obscure state tax break depriving California of up to $146 million of annual tax revenue that could be used to combat climate change-fueled wildfires, according to a new report released amid an inferno tearing through Los Angeles.

Los Angeles Mayor Karen Bass , meanwhile, is facing backlash for the cuts she made to Los Angeles’s firefighting force. In April of last year, herSeparately, Bass’s budget also called for the elimination of positions within the city’s emergency management agency, which responds to crises like wildfires.

California lawmakers have taken steps to eliminate the loophole, but oil and gas interests have fought back. In 2024, California lawmakersNew Mexico rolled back some of its water’s edge tax loopholes last year, but the state’s new legislation does not apply to U.S.-based corporations such as Chevron and ExxonMobil, Climate Center researchers found.

And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part ofIn addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s...

 

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