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TAX RELATED

SB 788 (Niello) | Tax preparers: exemptions

Current law requires tax preparers to register with the California Tax Education Council and provide certain written disclosures, with exemptions for licensed accountants. This bill expands the exemption to include a firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the California Board of Accountancy, or is authorized to practice public accountancy.

Status: Not yet referred to a policy committee.

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: In the Committee on Revenue and Taxation

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

Excludes for five years up to $20,000 of uniformed services retirement pay and annuity payments from a United States Department of Defense Survivor Benefit Plan received by qualified taxpayers from gross income under the Personal Income Tax Law

Status: In the Committee on Revenue and Taxation

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: In the Committee on Revenue and Taxation 

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

Establishes a catastrophe savings account (CSA) for the purposes of covering certain emergency-related expenses. Provides, for taxable years 2025 through 2029, certain state tax benefits on CSA contributions and earnings.

Status: In the Committee on Revenue and Taxation, referred also to and the Budget and Finance 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: Referred to the Committee on Revenue and Taxation

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: In the Committee on Revenue and Taxation

AB 376 (Tangipa) | Personal Income Tax Law: exclusions: insurance proceeds: wildfires

Provide an exclusion for any amount received from qualified insurance proceeds. The bill defines “qualified insurance proceeds” to mean any amount received under a homeowner’s or a renter’s insurance policy for damages or expenses from a fire occurring in an area proclaimed by the Governor to be in a state of emergency.

Status: Set for a hearing in the Committee on Revenue and Taxation; author cancelled

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: 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: 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: In the Committee on Revenue and Taxation

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: In the Committee on Revenue and Taxation

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: In the Committee on Revenue and Taxation

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

Creates the Home Sharing Act of 2025 to help match homeowners with extra rooms to those seeking affordable housing. Among other items, this bill exempts low-income homeowners from paying income tax on rental earnings.

Status: In the Judiciary Committee. Referred also to the Human Services and Revenue and Taxation Committees.

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: 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: In the Committee on Revenue and Taxation

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

Creates a tax credit for one qualified pet adoption for pet medical costs.

Status: 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: In the Committee on Revenue and Taxation

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 burned or was deemed uninhabitable due to a disaster.

Status: Referred to the Committee on Revenue and Taxation

AB 781 (DeMaio) | Taxes and fees. “Placeholder” bill

The author intends to introduce legislation related to eliminating, reducing, and restricting taxes and fees.

Status: Introduced on February 18; not referred to a committee, indicating it may not move

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: Referred to 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 od certain expenses of elementary and secondary school teachers.

Status: 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: Referred to 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: Referred to the Committee on Revenue and Taxation

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

Allows a credit, equal to the amount incurred by a person or a small business, for the purchase of a backup generator, not to exceed $7,000, for use in a residence or commercial property. The bill would limit the credit allowed to $3,500 per taxable year.

Status: Referred to the Committees on Natural Resources and Revenue and Taxation

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: Referred to 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: Referred to the Committee on Revenue and Taxation

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: Referred to 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: Referred to the Committee on Revenue and Taxation

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

The author intends to introduce a bill to amend, update, and modernize California’s Film and Television Tax Credit Program.

Status: Introduced on February 20; not referred to a committee, indicating it may not move

AB 1219 (Wallis) | Personal income tax: rate

This bill would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income.

Status: Referred to 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: Referred to the Committees on Revenue and Taxation and Housing and Community Development

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: Referred to 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: Referred to the Committee on Revenue and Taxation

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

Current law allows the California Film Commission to allocate a motion picture credit of 20% or 25% of qualified expenditures for films produced in the state between July 1, 2025, and July 1, 2030. The commission certifies 96% of the allocated credit unless the taxpayer submits a diversity workplan and makes a good-faith effort toward its diversity goals.

This bill removes the good-faith effort standard, requiring the commission to certify the credit only if the taxpayer meets the diversity goals.

Status: Referred to the Committees on Revenue and Taxation and Arts, Entertainment, Sports & Tourism

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: Referred to 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: Referred to the Committee on Revenue and Taxation

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: Referred to 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: Introduced on March 13

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: In the Military and Veterans Affairs Committee, also referred to Revenue and Taxation

SB 17 (Ochoa Bogh) | 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: Referred to the Committees on Revenue and Taxation and Labor, Public Employment and Retirement   

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

Enacts a full exemption from property tax for disabled veterans.

Status: In the Military and Veterans Affairs Committee, also referred to Revenue and Taxation

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: In the Military and Veterans Affairs Committee, also referred to Revenue and Taxation

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: In the Committee on Education, referred also to Revenue and Taxation

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: In the Committee on Revenue and Taxation

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: In the Committee on Revenue and Taxation 

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: In the Committee on Revenue and Taxation

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

Enacts a full exemption from property tax for disabled veterans.

Status: Referred to the Committees on Revenue and Taxation and Military and Veteran’s Affairs

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: Referred to the Committee on Revenue and Taxation

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

Extends indefinitely tax credits for food bank donations.

Status: Referred to the Committee on Revenue and Taxation

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: Referred to the Committee on Revenue and Taxation

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: Referred to the Committee on Revenue and Taxation

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: Referred to the Committee on Revenue and Taxation

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

Existing law exempts certain personal property purchases from state sales and use tax until July 1, 2030, for qualified buyers using them primarily for manufacturing, recycling, or research. However, local sales and use taxes still apply. This bill provides a tax credit equal to the local sales or use tax paid on purchases that would have been exempt if not for local tax rules.

Status: Not yet referred to a policy committee.

SB 591 (Valladares) | Taxation: penalties. Placeholder” bill

The author intends to introduce legislation related to ensuring tax penalties are commensurate to the violation.

Status: Not yet referred to a policy committee.

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

This bill would authorize an employer to claim a credit equal to the amount of overtime wages paid to specified agricultural employees covered by a certain wage order.

Status: Referred to the Committee on Labor, Public Employment and Retirement  

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

The author intends to introduce a bill to amend, update, and modernize California’s Film and Television Tax Credit Program.

Status: Not yet referred to a policy committee.

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: Referred to the Committee on Revenue and Taxation

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: Referred to the Committee on Revenue and Taxation

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: Referred to the Committee on Revenue and Taxation

SMALL BUSINESS RELATED

AB 265 (Caloza) | Small Business 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: Referred to the Committee on Economic Development, Growth, and Household Impact

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 small businesses directly impacted by the January 2025 wildfires in the Counties of Los Angeles and Ventura.

Status: Referred to the Committee on Economic Development, Growth, and Household Impact

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: Introduced on March 13

AB 713 (Solache) | California Disaster Assistance Act: financial assistance “Placeholder” bill.

The author intends to introduce a bill relating to small business disaster relief, including establishing an employee disaster relief program

Status: Introduced on February 14; may not move forward. 

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 Committee on Government Organization; referred to Appropriations

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

Beginning July 1, 2027, this bill would expand eligibility for benefits under the paid family leave program to include those who take time off work to care for a seriously ill designated person, meaning, any blood relation or a person whose association with the employee is the equivalent of a family relationship.

Status: Referred to the Committees on Revenue and Taxation and Labor, Public Employment and Retirement 

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

The author intends to introduce legislation that would establish a certification process to streamline the steps to open and operate a business in California.

Status: Introduced on February 21; not yet referred to a policy committee.

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

Exempts microbusinesses incorporated in California from the minimum franchise tax.

Status: Referred to the Committee on Revenue and Taxation