CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners.

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Tax-Related

AB 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: Introduced on Jan. 17, 2025

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

For taxable years beginning on or after January 1, 2024, this bill would provide an exclusion from gross income for amounts received, on or after March 1, 2024, as compensation for specified costs and losses related to the Chiquita Canyon elevated temperature landfill event in Los Angeles County.

Status: Introduced on Dec. 2, 2024 

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

For taxable years beginning on or after January 1, 2027, and before January 1, 2037, this bill would exclude from taxable income retirement pay received by a taxpayer-Veteran during the taxable year. The bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2037, would also exclude from taxable income annuity payments received by a qualified taxpayer, pursuant to a United States Department of Defense Survivor Benefit Plan during the taxable year.

Status: Introduced on Dec. 2, 2024

Of note: In his proposed budget, the Governor seeks to exclude up to $20,000 in military retirement and survivor benefits from taxable income, for filers with incomes below a certain threshold. Additionally, SB 1 (below) is very similar to the proposal and to AB 53.

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

This bill, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, would provide an exclusion from gross income for any qualified taxpayer for amounts received in settlement for costs and losses associated with the 2020 Bobcat Fire in Los Angeles County.

Status: Introduced on Jan. 7, 2025

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

This bill, until January 1, 2030, would authorize a homeowner to establish one catastrophe savings account that, among other things, has the specified purpose of covering the amount of insurance deductibles and other uninsured portions of risks of loss from wildfire, flood, or earthquake. For taxable years beginning on or after January 1, 2025, and before January 1, 2030, AB 232 allows a deduction from AGI for amounts contributed by an individual homeowner to a catastrophe savings account.

Status: Introduced on Jan. 13, 2025

AB 245 (Gipson) | Property taxation: disaster victims.  “Placeholder” bill now. 
The author intends to create legislation that would provide meaningful and automatic property tax relief for disaster victims, including fire disasters, in areas of the state proclaimed to be in a state of emergency by the Governor.

Status: Introduced on Jan. 14, 2025 

SB 1 (Seyarto) | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act. Would exclude military retirement and Survivors Benefits Plans income from state income tax.

Status: Introduced on Dec. 2, 2024.

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

This bill, for taxable years beginning on or after January 1, 2026, 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: Introduced on Dec. 2, 2024 

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

This bill would exempt from taxation, property owned by, and constitutes the principal place of residence of, a veteran, the veteran’s spouse, or the veteran and the veteran’s spouse jointly, if the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property exemption in the same amount that they would have been entitled to if the veteran was alive and if certain conditions are met.

Status: Introduced on Dec. 2, 2024

SB 33 (Cortese) | Homeless pupils: California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program.

Subject to an appropriation, SB 33 would require the State Department of Social Services to establish the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program, a guaranteed income program for 4 months from May 1, 2026, to August 1, 2026 for homeless students. This bill, for the taxable years beginning on or after January 1, 2026, and before January 1, 2031, would also exclude from gross income any amount received as an award pursuant to the California SOAR Program.

Status: Introduced on Dec. 2, 2024

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

Removes a disabled Veteran’s disability pay from the personal income calculation when determining their qualification for the Low-Income Exclusion of the Disabled Veterans’ Property Tax Exemption.

Status: Introduced on Jan. 7, 2025

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: Introduced on Jan. 17, 2025

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

Increases the maximum estimated value of a state contract for goods, services, or information technology awarded to a small business from $250,000 to $350,000.

Status: Introduced on Jan. 14, 2025