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OF PARTICULAR NOTE

AB 1175 (Irwin) | Accountants

Phases in new education and experience standards for a certified public accountant license and authorizes out-of-state CPA license holders to practice public accountancy in California under a practice privilege if the state that issued their license has comparable licensure requirements.
Status: Passed the Assembly; Referred to Senate Business, Professions, and Economic Development 

SB 788 (Niello) | Tax preparers: exemptions

This bill adds employees of firms registered with the California Board of Accountancy from the requirement to register with the California Tax Education Council under the Tax Preparers Act as specified.
Status: Passed Senate Committees 

TAX RELATED

ABx 3 (Wallis) | Personal Income Tax: tax credits: fire-resistant home improvements.

This bill would allow a credit against personal income taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, in an amount equal to 40% of the taxpayer’s qualified expenses, not to exceed $400 per taxable year, or $2,000 cumulatively.
Status: Will not move forward

AB 27 (Schiavo) | Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.

Provides a gross income exclusion for amounts received as payment for losses related to the Chiquita Canyon elevated temperature landfill event in Los Angeles County.
Status: Passed Assembly committees 

AB 53 (Ramos) | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.

This bill provides a partial gross income exclusion for certain military retirement pay and survivor benefits.
Status: Passed Assembly committees 

AB 97 (Lackey) | Personal Income Tax Law: Corporation Tax Law: Bobcat Fire: exclusions.

Excludes from gross income amounts received in settlement arising out of the 2020 Bobcat Fire.
Status: Passed Assembly committees 

AB 231 (Ta) | Income and corporation taxes: credits: work opportunity credit

Allows businesses with fewer than five employees, under the Personal Income Tax Law and the Corporation Tax Law, a credit equal to 40% of the wages paid to an employee who has previously been convicted of a felony.
Status: Held in the Appropriations committee 

AB 232 (Calderon) | Natural disasters: catastrophe savings accounts: personal income tax.

Allows an above-the-line deduction for contributions to a "catastrophe savings account" by a "qualified taxpayer" and excludes any interest accruing to the account from gross income, as specified.
Status: Held in the Appropriations committee 

AB 245 (Gipson) | Property taxation: application of base year value disaster relief.

Existing law allows the transfer of a property's base year value to a comparable replacement within the same county if substantially damaged or destroyed by a Governor-declared disaster, provided it's acquired or built within five years. This bill extends the timeframe to seven years if property was damaged by certain fires. This bill also allows for a fair market value reduction for properties impacted by certain 2025 fires.   
Status: Passed Assembly committees 

AB 376 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.

Excludes from gross income, under the Personal Income Tax Law and the Corporation Tax Law, amounts received in settlement by a "qualified taxpayer" to replace property damaged or destroyed by a wildfire occurring in California.
Status: In the Committee on Revenue and Taxation 

AB 386 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: credits: student loan payments

Allows a credit to an employer that makes student loan payments on behalf of a full-time employee and excludes from the employee's gross income the amount of those payments made on their behalf
Status: Held in the Committee on Revenue and Taxation 

AB 389 (Wallis) | Personal Income Tax: tax credits: fire-resistant home improvements

Allows a credit for certain home-hardening measures.
Status: Held in the Committee on Revenue and Taxation 

AB 397 (Mark González) | Personal Income Tax Law: young child tax credit

Expands the number of taxpayers eligible for the California Young Child Tax Credit by gradually modifying the definition of "qualifying child" to include children over the age of five.
Status: Held in the Appropriations Committee 

AB 398 (Ahrens) | Personal income tax: Earned Income Tax Credit.

Establishes a minimum credit amount of approximately $300 for taxpayers who claim the California Earned Income Tax Credit, as specified.
Status: Held in the Appropriations Committee 

AB 429 (Hadwick) | Personal Income Tax Law: Corporation Tax Law: exclusions: wildfires

Excludes from gross income amounts received by a qualified taxpayer as settlement payments related to certain fires.
Status: Passed Assembly committees 

AB 474 (Ward) | Housing discrimination: nonprofit home-sharing program: income tax exclusion: eligibility for public social services

The tax impacts were amended out of this bill.

AB 490 (Tangipa) | Personal Income Tax Law: deduction from gross income: car loan interest payments

Allows a deduction for interest paid on a qualified vehicle loan.
Status: Held in the Committee on Revenue and Taxation 

AB 547 (Tangipa) | Personal Income Tax Law: credits: in vitro fertilization.

The bill allows a tax credit, up to $5,000, for qualified expenses of in vitro fertilization.
Status: Held in the Appropriations Committee 

AB 691 (Wallis) | Personal Income Tax Law: credits: pet adoption and medical expenses

Creates a tax credit of up to $750 for qualified pet adoption and pet medical costs.
Status: Held in the Committee on Revenue and Taxation 

AB 702 (Ta) | Personal income tax: exclusions: interest income: theft

This bill allows taxpayers to exclude from gross income any interest earned on an investment during the year if that investment is stolen, sold, or transferred without their consent.
Status: Will not move forward 

AB 755 (Tangipa) | Income tax: exclusion: disasters

Provides an exclusion for amounts received as income, not to exceed $300,000 per taxable year, by a qualified taxpayer whose real property, residence, or business was burned or deemed uninhabitable due to a disaster.
Status: Will not move forward 

AB 781 (DeMaio) | Charges: health savings accounts: electricity

This billallows a deduction in computing adjusted gross income in connection with health savings accounts in modified conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year to a health savings account. (This bill also repeals laws related to electric rates).
Status: Will not move forward 

AB 814 (Schiavo) | Personal Income Tax Law: exclusions: law enforcement retirement.

Excludes from gross income peace officer retirement pay and amounts received by the beneficiary of an annuity plan set up for the surviving spouse or dependent of a person that lost their life in services as a peace officer.
Status: Held in the Committee on Revenue and Taxation 

AB 834 (Hadwick) | Personal Income Tax Law: deduction: teachers.

Conform state law with federal law to allow the deduction of certain expenses of elementary and secondary school teachers.
Status: Held in the Committee on Revenue and Taxation 

AB 838 (Ta) | Taxation: renter’s credit

If specified in a budget bill, this bill would temporarily expand the renter’s tax credit for five years, starting the year funding is approved. Income limits apply.
Status: Held in the Committee on Revenue and Taxation 

AB 918 (Ransom) | Personal Income Tax Law: exclusions: first responders

Excludes from gross income "qualified wages" paid to first responders who are employees of a local agency for work performed in an area subject to a declared state or local emergency as part of the provision of mutual aid, as specified.
Status: Held in the Committee on Revenue and Taxation 

AB 921(Castillo) | Generators: air pollution regulations: income tax credits

Allows a credit for the purchase of a backup generator, not to exceed $7,000, for use in a residence or commercial property.
Status: Not moving forward 

AB 976 (Ávila Farías) | Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit

This bill would give businesses operating in a disadvantaged community with total gross annual receipts of no greater than $5,000,000 and with 25 or fewer employees a tax credit for expenses related to retail theft prevention.
Status: Held in the Committee on Revenue and Taxation 

AB 984 (Nguyen) | Personal income taxes: deductions: CalABLE contributions

Provides an above-the-line deduction for contributions made to a California Achieving a Better Life Experience (ABLE) Act account.
Status: Held in the Appropriations committee 

AB 1057 (Michelle Rodriguez) | Personal Income Tax Law: exclusions: first responders: overtime pay

Creates an exclusion for “qualified overtime wages,” defined to mean overtime wages paid to a qualified taxpayer for work performed directly in response to, or in support of, emergency operations.
Status: Held in the Committee on Revenue and Taxation 

AB 1124 (Bains) | Personal Income Tax Law: exclusions: first responders: overtime pay

Creates an exclusion for “qualified overtime wages,” defined to mean overtime wages paid to a qualified taxpayer for work performed directly in response to, or in support of, emergency operations.
Status: Not moving forward 

AB 1138 (Zbur) | Income and corporate taxes: tax credits: motion pictures.

Modifies the California Motion Picture Credit 4.0, which will be in place from July 1, 2025 to July 1, 2030, in order to increase the competitiveness of the credit in relation to other states and counties.
Status: Passed Assembly committees 

AB 1219 (Wallis) | Personal income tax: rate

Reduces the Personal Income Tax by 1% across all brackets by decreasing statutorily prescribed income tax rates and adjusting the income thresholds of certain tax brackets.
Status: Held in the Committee on Revenue and Taxation 

AB 1265 (Haney) | Income taxes: credits: rehabilitation of certified historic structures

This bill extends the availability of the historic home rehabilitation tax credit and increases the tax credit for certain certified historic buildings from 25% to 30% of the cost of approved rehabilitation work.
Status: Held in the Committee on Revenue and Taxation 

AB 1282 (Jeff Gonzalez) | Personal Income Tax Law: credits: medical expenses

This bill would allow a deduction in income for out-of-pocket medical costs, limited to $5,000.
Status: Held in the Committee on Revenue and Taxation 

AB 1354 (Wallis) | Personal Income Tax Law: credits: insurance

Allows a credit for premium payments made to residential property insurance policies.
Status: Held in the Committee on Revenue and Taxation 

AB 1377 (McKinnor) | Income taxes: credits: motion picture credit

Removes the “good-faith effort” standards in the Film and Television Tax Credit 4.0 program related to diversity workplans and diversity goals submitted by motion picture applicants to the California Film Commission.
Status: Passed the Assembly committees 

AB 1431 (Tangipa) | Personal income taxes: credit: medical services: rural areas.

Allows a credit for a qualified taxpayer for medical services performed in a rural area, not to exceed $5,000 per taxable year.
Status: Held in the Committee on Revenue and Taxation 

AB 1443 (Castillo) | Personal income taxes: unemployment insurance: tips

This bill would exclude tips from gross income and would exclude tips from the definition of wages paid for employment for purposes of income tax withholding and for purposes of unemployment insurance and the employment training tax.
Status: Will not move forward 

AB 1435 (Nguyen) | Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs

Allows a credit for qualified cleanup expenditures, defined to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
Status: Held in the Committee on Revenue and Taxation 

AB 1518 (Committee on Revenue and Taxation) | Income taxes: administration: nonresident aliens: identifying numbers: group filing

Current law prevents the Franchise Tax Board from requiring nonresident aliens to provide a Social Security Number or Individual Taxpayer Identification Number if they are not eligible for one. It also allows nonresident aliens to file group tax returns and excludes certain payments made on their behalf from taxable income. This bill would make these provisions permanent.
Status: In the Senate, referred to the Revenue and Taxation committee 

SB 1 (Seyarto) | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.

Enacts the Military Services Retirement and Surviving Spouse Benefit Payment Act, which excludes two forms of military retirement income from state income tax.
Status: Held in the Appropriations committee 

SB 17 (Ochoa Bogh) | Personal income taxes: unemployment insurance: tips.

This bill would exclude tips from income for state tax purposes and remove tips from the definition of wages for employment tax purposes.
Status: Held in the Appropriations committee 

SB 23 (Valladares) | Property taxation: exemption: disabled veteran homeowners.

Enacts a full exemption from property tax for disabled veterans.
Status: Will not move forward 

SB 56 (Seyarto) | Property taxation: disabled veterans’ exemption: household income.

Provides that “household income” does not include service-connected disability payments when determining whether the low-income disabled veterans exemption applies.
Status: Passed the Seante Committees 

SB 64 (Grove)| Education expenses: School Choice Flex Account Act of 2025

This bill would establish the School Choice Flex Account Act of 2025 only if an unspecified Senate Constitutional Amendment is approved as part of the November 2026 election. If enacted, the bill provides for income tax exclusions.
Status: Will not move forward    

SB 267 (Choi)| Personal income tax: credit: qualified teacher: school supplies

This bill would allow a tax credit for qualified teachers who purchase instructional materials and classroom supplies, not to exceed $250.
Status: Held in the Appropriations Committee 

SB 268 (Choi) | Income taxes: gross income exclusions: state of emergency: natural disaster settlements

Provide an exclusion for amounts received from a settlement entity by a qualified taxpayer to replace property damaged or destroyed by a natural disaster that was declared a state of emergency by the Governor.
Status: Held in the Appropriations Committee 

SB 269 (Choi) | Personal income taxes: Fire Safe Home Tax Credits Act

Provides credits to a qualified taxpayer for qualified costs relating to qualified home hardening and for qualified costs relating to qualified vegetation management, not to exceed an aggregate amount of $500,000,000 per taxable year. This bill also requires a qualified taxpayer to reserve a credit for these qualified costs to be eligible for the credits and provide all necessary information.
Status: Held in the Appropriations Committee 

SB 296 (Archuleta) | Property taxation: exemption: disabled veteran homeowners

Enacts a full exemption from property tax for disabled veterans.
Status: Passed the Senate committees 

SB 302 (Padilla) | Personal Income Tax Law and Corporation Tax Law: exclusions: environmental credits

Conforms state law to specific Internal Revenue Code sections added by the Inflation Reduction Act of 2022, relating to renewable energy development.
Status: Passed the Senate Committees 

SB 353 (Alvarado-Gil)| Income tax: credits: food banks.

Extends indefinitely tax credits for food bank donations.
Status: Passed the Senate Committees 

SB 376 (Valladares) | Incomplete gift nongrantor trusts: Personal Income Tax Law.

This bill changes the definition of an "incomplete gift nongrantor trust" to exclude charitable remainder trusts.
Status: Passed the Senate Committees 

SB 529 (Choi)| Personal income taxes: deduction: California qualified tuition program

Allows limited deductions for contributions to the California qualified tuition program established pursuant to the Golden State Scholarshare Trust Act.
Status: Failed to pass from the Revenue and Taxation committee 

SB 566 (Grove) | Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit

This bill would increase the homeowners’ exemption, for certain homeowners, from $7,000 to $50,000 of the full value of a dwelling. It would also increase credits for qualified renters.
Status: Failed to pass from the Revenue and Taxation committee 

SB 587 (Grayson) | Personal income taxes: credit: manufacturing: sales and use taxes.

Would enact credits against the Personal Income and Corporation Tax equal in the amount of taxes paid by a manufacturer because the current sales and use tax exemption for equipment used in manufacturing or research and development is a partial, not a full, exemption.
Status: Passed Senate Committees 

SB 591 (Valladares) | Taxation: electronic funds transfer: penalties

This bill would change the penalty for not making required electronic payments to the Franchise Tax Board. Instead of a 10% penalty, the first violation would result in a $100 fine, and each additional violation would result in a $500 fine, replacing the current 1% penalty.
Status: Passed Senate Committees 

SB 628 (Grove) | Employment: employer contributions: employee withholdings: credit: agricultural employees

This bill would create a payroll tax credit to reimburse agricultural employers for overtime wages paid to their agricultural employees.
Status: Will not move forward 

SB 630 (Allen) | Income and corporate taxes: tax credits: motion pictures.

Increases the annual authorization amount under Film and Television Production Tax Credit from $330 million to $750 million, and makes specified changes to the credit’s provisions.
Status: Passed the Senate committees 

SB 657 (Niello) | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program

This bill would exempt distributions made from a long-term qualified tuition program that are paid in a direct trustee-to-trustee transfer to a Roth IRA.
Status: Failed to pass the Appropriations committee 

SB 665 (Choi) | Personal Income Tax Law: Corporation Tax Law: credits: retail security measures

Would allow a credit for retail theft prevention measures, limited to $10,000 annually.
Status: Will not move forward 

SB 666 (Choi) | Personal income tax: credit: home security surveillance

Would allow a tax credit, not to exceed $250, for the purchase and installation of a security surveillance system at the taxpayer’s principal California based single-family residence.
Status: Will not move forward

SMALL BUSINESS RELATED

AB 265 (Caloza) | Small Business and Nonprofit Recovery Fund Act.

Appropriates $100,000,000 to a newly-created Small Business Recovery Fund for a competitive grant program for small businesses and nonprofit organizations directly impacted by a state of emergency proclaimed by the Governor.
Status: Passed the Assembly committees 

AB 685 (Solache) | Los Angeles and Ventura Wildfire Small Business Recovery Act

Establishes the Los Angeles and Ventura Wildfire Small Business Recovery Act to provide assistance to certain small businesses.
Status: Will not move forward 

AB 1519 (Committee on Revenue and Taxation) Direct File: employment: notice

Requires employer notifications to all employees about specified income tax filing assistance programs to also include information regarding Direct File.
Status: Referred to the Senate Committee on Revenue and Taxation 

AB 713 (Solache) | Public postsecondary education: student employment.

Bill amended; now relates to state universities and colleges.

SB 70 (Seyarto) | Public contracts: Small Business Procurement and Contract Act.

This bill increases, from $250,000 to $350,000, the maximum estimated value of a contract awarded pursuant to the Small Business Procurement and Contract Act which allows state agencies to award a contract to a certified small business or to a disabled veteran business enterprise without complying with competitive bidding requirements.
Status: Passed the Senate committees 

SB 590 (Durazo) | Paid family leave: eligibility: care for designated persons

Expands eligibility for benefits under the Paid Family Leave program to include individuals who take time off work to care for a seriously ill designated person, as defined.
Status: Passed the Senate committees 

SB 705 (Hurtado) | Small businesses: certification. “Placeholder” bill

Status: This bill will not move forward.

SB 816 (Valladares) | Taxation: corporations: minimum franchise tax: limited liability companies: annual tax: microbusinesses

Exempts microbusinesses incorporated in California from the minimum franchise tax.
tatus: This bill will not move forward