|
CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners.
Click here to find your California Representative
Property Related
AB 1611(Haney) | Taxation: capital gains and losses: single-family rental homes.
Prohibits the application of a 1031 exchange for anyone owning 50 or more single-family rental homes in California.
Latest status: Introduced on Jan. 20
AB 1620 (Sanchez) | Personal Income Tax Law: deductions: homeowners’ insurance premiums
Allows a deduction on the cost of a homeowners insurance premium for a primary residence.
Latest status: Referred to the Revenue & Taxation Committee
AB 2394 (Lee) | Personal Income Tax Law: exclusions: real property.
Creates a personal income tax exclusion for persons over 65 who have owned their property for at least 20 consecutive years.
Latest status: Introduced on Feb. 20
SB 288 (Seyarto) | Property taxation: change in ownership: family homes and farms.
Specifies that the one-year period to claim an intergenerational transfer change in ownership exclusion is deemed to commence on the effective date of a probate court’s determination of the final ownership of property.
Latest status: In the Assembly
SB 623 (Archuleta) | Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions
If a related Senate Constitutional Amendment is approved by voters in November 2026, homeowners would be allowed to claim both the homeowners’ exemption and the veterans’ exemption or the disabled veterans’ exemption on the same property.
Latest status: In the Assembly
SB 888 (Seyarto) | Property taxation: disabled veterans’ exemption: household income
States that service-connected disability payments will not count as household income as applied to the disabled veterans’ property taxation exemption.
Latest status: Referred to the Revenue & Taxation and Military & Veterans Affairs Committees
Small Business Related
AB 685 (Solache) | Small Business Resiliency and Innovation Act
Creates the Small Business Resiliency and Innovation Fund to provide assistance to small businesses.
Latest status: In the Senate
SB 347 (Choi) | Annual tax: partnerships and LLCs
Reduces the annual tax on every limited partnership, limited liability partnership, and limited liability company from $800 to $600.
Latest status: Will not move forward
Income and Corporate Tax
AB 1265 (Haney) | Income taxes: credits: rehabilitation of certified historic structures
Allows the current state historic tax credit program’s statutory provisions to expire on December 31, 2027, and authorizes a similar tax credit program, with modifications, to be effective from January 1, 2027, to January 1, 2031.
Latest status: In the Senate
AB 1550 (Sanchez) | Personal income taxes: deductions: tips: overtime compensation
Conforms California law with federal law such that workers can deduct qualifying tips and qualifying overtime pay on top of the standard deduction, rather than choosing one.
Latest status: Referred to the Revenue & Taxation Committee
AB 1565 (Ta) | Income and corporation taxes: credits: work opportunity credit
Provides businesses with a tax credit for hiring people who have recently been convicted of a felony or recently released from prison. The tax credit would equal 40% of the wages the business pays that employee during the year.
Latest status: Referred to the Revenue & Taxation Committee
AB 1606 (Nguyen) | Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.
Provides a one-time tax credit to business entities owning or leasing commercial property for money spent on cleanup costs associate with unhoused encampments.
Latest status: Referred to the Revenue & Taxation Committee
AB 1690 (Ahrens) | Personal Income Tax Law: young child tax credit
Expands the Young Child Tax Credit by raising the maximum age of a “qualifying child” over time.
Latest status: Referred to the Revenue & Taxation Committee
AB 1698 (Alanis) | Personal Income Tax Law: Corporation Tax Law: credits: food handler card
Applicable to both personal and corporate tax, this bill establishes a new tax credit for small businesses paying for their employees to obtain required food handler cards.
Latest status: Referred to the Revenue & Taxation Committee
AB 2016 (Gonzalez) | Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay
Expands Personal Income Tax exclusions for military retirement pay, and Survivor Benefit Plan annuity payments.
Latest status: Introduced on Feb. 17
AB 2084 (Bauer-Kahan) | Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status.
Changes how California handles the revocation of state tax‑exempt status when a nonprofit loses its federal tax‑exempt status. This bill establishes a notice and cure period, rather than an automatic revocation.
Latest status: Introduced on Feb. 18
AB 2205 (Quirk-Silva) | Personal Income Tax Law: Corporation Tax Law: New Employment Credit.
Extends the New Employment Credit for five additional years
Latest status: Introduced on Feb. 19
AB 2222 (Ward) | Taxation
A placeholder bill with the intention to add language incentivizing the retention and hiring of journalists in California through an employment tax credit.
Latest status: Introduced on Feb. 19
AB 2270 (Arambula) | Low-income housing tax credit: farmworker housing
Updates California’s Low‑Income Housing Tax Credit (LIHTC) rules specifically for farmworker housing projects
Latest status: Introduced on Feb. 19
AB 2319 (Schultz) | California motion picture tax credit.
A placeholder bill with the intent to add language about a state tax credit for postproduction work.
Latest status: Introduced on Feb. 18
AB 2336 (Macedo) | Personal Income Tax Law: exclusions from income: retirement: overtime
This bill would exclude up to $25,000 of overtime pay and up to $25,000 of defined benefit pension income from state taxable income.
Latest status: Introduced on Feb. 19
AB 2403 (Elhawary) | Personal Income Tax Law and Corporation Tax Law: credits: commercial production.
A placeholder bill to establish income tax credits relating to the production of commercials in California.
Latest status: Introduced on Feb. 20
AB 2427 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: tax credits: farming
Creates new tax credits for agricultural businesses to support farming operations, equipment investment, and work performed in high fire‑risk areas.
Latest status: Introduced on Feb. 20
AB 2444 (Michelle Rodriguez) | Personal Income Tax Law: qualified tuition program
This bill updates California’s personal income tax law to conform to new federal rules allowing certain 529 plan transfers to Roth IRAs and creates a new state tax deduction for contributions to the state’s 529 plan (ScholarShare).
Latest status: Introduced on Feb. 20
AB 2533 (Tangipa) | Personal Income Tax Law: exclusions: fitness benefit
Excludes from gross income any employer-provided qualified fitness benefit, including gym fees.
Latest status: Introduced on Feb. 20
AB 2591(Bains) | Personal income tax: standard deduction: federal poverty level
Creates the “Taxing Californians into Poverty Protection Act” and replaces California’s current standard deduction with a new deduction equal to the federal poverty level for the taxpayer’s household size.
Latest status: Introduced on Feb. 20
SB 881(McNerney) | Income taxation: credits: voluntary contributions: food bank donations
Extends by six years the tax credit for food bank donations.
Latest status: Referred to the Revenue & Taxation Committee
SB 921(Grove) | Employment: employer contributions: employee withholdings: credit: agricultural employees
Creates a new employer credit for agricultural overtime. Agricultural employers may claim a credit equal to the overtime wages paid each quarter.
Latest status: Referred to the Labor, Public Employment & Retirement Committee
SB 984 (Ochoa Bogh) | Personal Income Tax Law: deductions: tips.
Allows taxpayers to deduct qualified tips from their taxable income, matching a temporary federal deduction that exists through 2028.
Latest status: Referred to the Revenue & Taxation Committee
SB 1045 (Strickland) | Personal income tax
A spot bill related to income tax.
Latest status: Introduced on Feb. 11
SB 1084 (Alvarado-Gil) | Personal income taxes: Fire Safe Home Tax Credits Act
Creates two new personal income tax credits to help homeowners in fire‑prone areas pay for home hardening and vegetation management.
Latest status: Introduced on Feb. 13
SB 1096 (Dahle) | Personal income tax: senior tax credit
This bill creates a new $1,500 credit for taxpayers that are (or their spouse is) 65 years or older and have no earned income.
Latest status: Introduced on Feb. 13
SB 1102 (Dahle) | Personal Income Tax Law: credit: nurses
Creates a new personal income tax credit for licensed nurses working in rural health facilities.
Latest status: Introduced on Feb. 13
SB 1113 (Valladares) | Corporation taxes
A spot bill related to corporate tax.
Latest status: Introduced on Feb. 17
SB 1118 (Alvarado-Gil) | Personal Income Tax Law: Corporation Tax Law: tax credits: backup generators: solar batteries.
Creates new income tax and corporation tax credits to encourage the purchase of backup electricity generators and solar batteries in high‑risk wildfire areas.
Latest status: Introduced on Feb. 17
SB 1120 (McNerney) | Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes
Expands the California Competes Tax Credit program and allows certain taxpayers in “strategic industries” to elect to make their CCTC refundable. “Strategic industry” means industries involved in developing nuclear fusion technologies, quantum technology, or other industries identified in the California Jobs First State Economic Blueprint.
Latest status: Introduced on Feb. 17
SB 1137 (Valladares) | Personal income tax: deduction: medical expenses
Lowers the medical expense deduction threshold for state personal income tax from 7.5% to 4% of federal AGI.
Latest status: Introduced on Feb. 18
SB 1144 (Valladares) | Personal income taxes: exemption credit: dependents.
Increases the dependent exemption credit from $475 to $700 per dependent.
Latest status: Introduced on Feb. 18
SB 1249 (Richardson) | Personal income taxes: deductions: elderly senior dependents.
Creates a new state income tax deduction for taxpayers who support elderly senior dependents.
Latest status: Introduced on Feb. 19
SB 1277 (Grove) | Taxation: Personal Income Tax Law: cost-of-living refundable tax credit
Establishes a refundable personal income tax credit available to California residents.
Latest status: Introduced on Feb. 20
SB 1343 (Dahle) | Income tax credit: sales and use tax paid: natural disasters
Creates a temporary personal income tax credit to reimburse Californians for sales and use tax paid on certain items needed to rebuild a primary residence after a Governor‑declared natural disaster.
Latest status: Introduced on Feb. 20
SB 1407 (Archuleta) | Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay
Expands personal income tax exclusions for military retirement pay, and Survivor Benefit Plan annuity payments.
Latest status: Introduced on Feb. 20
Worker’s Compensation
AB 1576 (Ortega) | Workers’ compensation: Subsequent injuries payments
Relates to the Subsequent Injuries Benefits Trust Fund and clarifies how disability should be measured for workers who suffer a second injury and adds new rules around second injuries occurring after 2027.
Latest status: Referred to the Insurance Committee
Other Bills of Interest
AB 1790 (Connolly) | Corporations Tax Law: water’s-edge election: global intangible low-taxed income
Repeals the current water’s-edge election and moves the state toward mandatory worldwide combined reporting.
Latest status: Introduced on Feb. 10
SB 1349 (Gonzalez) | Taxation: tax expenditures: California Tax Expenditure Review Board
Creates a new California Tax Expenditure Review Board to evaluate the state’s largest tax expenditures (ie: credits, deductions, exemptions) and recommend whether they should be continued, modified, or repealed.
Latest status: Introduced on Feb. 20
|
