| 1 | 1 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1435Introduced by Assembly Member NguyenFebruary 21, 2025 An act to add and repeal Sections 17053.76 and 23688 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1435, as introduced, Nguyen. Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenditures. The bill would define qualified cleanup expenditures for this purpose to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenditures. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares as follows:(a) The United States Supreme Court decision in City of Grants Pass, Oregon v. Johnson (2024) 603 U.S. 520 has enabled public entities to enforce no-camping ordinances on public property, resulting in the displacement of unhoused individuals.(b) As a consequence, many individuals experiencing homelessness have moved from public property to private property, leading to an increase in unauthorized encampments on business premises across California.(c) Unauthorized encampments and illegal dumping on private property have significantly increased, placing a financial burden on property owners and businesses statewide.(d) Although businesses are currently able to deduct cleanup expenses as a business expense, the persistent costs associated with addressing unauthorized encampments continue to create financial challenges. Additional relief through a targeted tax credit would help mitigate these ongoing expenses and support businesses in maintaining safe and accessible properties.(e) Providing a tax credit for cleanup expenses will directly support businesses, encourage timely action, and ensure properties remain safe and accessible, offering a more meaningful financial relief compared to standard deductions.SEC. 2. Section 17053.76 is added to the Revenue and Taxation Code, to read:17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 3. Section 23688 is added to the Revenue and Taxation Code, to read:23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1435Introduced by Assembly Member NguyenFebruary 21, 2025 An act to add and repeal Sections 17053.76 and 23688 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1435, as introduced, Nguyen. Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenditures. The bill would define qualified cleanup expenditures for this purpose to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenditures. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION |
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| 10 | 10 | | |
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| 11 | 11 | | Assembly Bill |
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| 12 | 12 | | |
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| 13 | 13 | | No. 1435 |
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| 14 | 14 | | |
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| 15 | 15 | | Introduced by Assembly Member NguyenFebruary 21, 2025 |
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| 16 | 16 | | |
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| 17 | 17 | | Introduced by Assembly Member Nguyen |
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| 18 | 18 | | February 21, 2025 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to add and repeal Sections 17053.76 and 23688 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 1435, as introduced, Nguyen. Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs. |
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| 27 | 27 | | |
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| 28 | 28 | | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenditures. The bill would define qualified cleanup expenditures for this purpose to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenditures. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.This bill would take effect immediately as a tax levy. |
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| 29 | 29 | | |
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| 30 | 30 | | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenditures. The bill would define qualified cleanup expenditures for this purpose to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenditures. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program. |
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| 33 | 33 | | |
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| 34 | 34 | | Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. |
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| 35 | 35 | | |
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| 36 | 36 | | This bill also would include additional information required for any bill authorizing a new tax expenditure. |
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| 37 | 37 | | |
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| 38 | 38 | | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. |
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| 39 | 39 | | |
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| 40 | 40 | | This bill would provide that no reimbursement is required by this act for a specified reason. |
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| 41 | 41 | | |
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| 42 | 42 | | This bill would take effect immediately as a tax levy. |
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| 43 | 43 | | |
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| 44 | 44 | | ## Digest Key |
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| 45 | 45 | | |
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| 46 | 46 | | ## Bill Text |
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| 48 | 48 | | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares as follows:(a) The United States Supreme Court decision in City of Grants Pass, Oregon v. Johnson (2024) 603 U.S. 520 has enabled public entities to enforce no-camping ordinances on public property, resulting in the displacement of unhoused individuals.(b) As a consequence, many individuals experiencing homelessness have moved from public property to private property, leading to an increase in unauthorized encampments on business premises across California.(c) Unauthorized encampments and illegal dumping on private property have significantly increased, placing a financial burden on property owners and businesses statewide.(d) Although businesses are currently able to deduct cleanup expenses as a business expense, the persistent costs associated with addressing unauthorized encampments continue to create financial challenges. Additional relief through a targeted tax credit would help mitigate these ongoing expenses and support businesses in maintaining safe and accessible properties.(e) Providing a tax credit for cleanup expenses will directly support businesses, encourage timely action, and ensure properties remain safe and accessible, offering a more meaningful financial relief compared to standard deductions.SEC. 2. Section 17053.76 is added to the Revenue and Taxation Code, to read:17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 3. Section 23688 is added to the Revenue and Taxation Code, to read:23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 49 | 49 | | |
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| 50 | 50 | | The people of the State of California do enact as follows: |
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| 51 | 51 | | |
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| 52 | 52 | | ## The people of the State of California do enact as follows: |
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| 54 | 54 | | SECTION 1. The Legislature finds and declares as follows:(a) The United States Supreme Court decision in City of Grants Pass, Oregon v. Johnson (2024) 603 U.S. 520 has enabled public entities to enforce no-camping ordinances on public property, resulting in the displacement of unhoused individuals.(b) As a consequence, many individuals experiencing homelessness have moved from public property to private property, leading to an increase in unauthorized encampments on business premises across California.(c) Unauthorized encampments and illegal dumping on private property have significantly increased, placing a financial burden on property owners and businesses statewide.(d) Although businesses are currently able to deduct cleanup expenses as a business expense, the persistent costs associated with addressing unauthorized encampments continue to create financial challenges. Additional relief through a targeted tax credit would help mitigate these ongoing expenses and support businesses in maintaining safe and accessible properties.(e) Providing a tax credit for cleanup expenses will directly support businesses, encourage timely action, and ensure properties remain safe and accessible, offering a more meaningful financial relief compared to standard deductions. |
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| 56 | 56 | | SECTION 1. The Legislature finds and declares as follows:(a) The United States Supreme Court decision in City of Grants Pass, Oregon v. Johnson (2024) 603 U.S. 520 has enabled public entities to enforce no-camping ordinances on public property, resulting in the displacement of unhoused individuals.(b) As a consequence, many individuals experiencing homelessness have moved from public property to private property, leading to an increase in unauthorized encampments on business premises across California.(c) Unauthorized encampments and illegal dumping on private property have significantly increased, placing a financial burden on property owners and businesses statewide.(d) Although businesses are currently able to deduct cleanup expenses as a business expense, the persistent costs associated with addressing unauthorized encampments continue to create financial challenges. Additional relief through a targeted tax credit would help mitigate these ongoing expenses and support businesses in maintaining safe and accessible properties.(e) Providing a tax credit for cleanup expenses will directly support businesses, encourage timely action, and ensure properties remain safe and accessible, offering a more meaningful financial relief compared to standard deductions. |
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| 58 | 58 | | SECTION 1. The Legislature finds and declares as follows: |
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| 59 | 59 | | |
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| 60 | 60 | | ### SECTION 1. |
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| 61 | 61 | | |
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| 62 | 62 | | (a) The United States Supreme Court decision in City of Grants Pass, Oregon v. Johnson (2024) 603 U.S. 520 has enabled public entities to enforce no-camping ordinances on public property, resulting in the displacement of unhoused individuals. |
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| 63 | 63 | | |
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| 64 | 64 | | (b) As a consequence, many individuals experiencing homelessness have moved from public property to private property, leading to an increase in unauthorized encampments on business premises across California. |
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| 65 | 65 | | |
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| 66 | 66 | | (c) Unauthorized encampments and illegal dumping on private property have significantly increased, placing a financial burden on property owners and businesses statewide. |
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| 67 | 67 | | |
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| 68 | 68 | | (d) Although businesses are currently able to deduct cleanup expenses as a business expense, the persistent costs associated with addressing unauthorized encampments continue to create financial challenges. Additional relief through a targeted tax credit would help mitigate these ongoing expenses and support businesses in maintaining safe and accessible properties. |
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| 69 | 69 | | |
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| 70 | 70 | | (e) Providing a tax credit for cleanup expenses will directly support businesses, encourage timely action, and ensure properties remain safe and accessible, offering a more meaningful financial relief compared to standard deductions. |
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| 71 | 71 | | |
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| 72 | 72 | | SEC. 2. Section 17053.76 is added to the Revenue and Taxation Code, to read:17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 74 | 74 | | SEC. 2. Section 17053.76 is added to the Revenue and Taxation Code, to read: |
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| 75 | 75 | | |
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| 76 | 76 | | ### SEC. 2. |
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| 77 | 77 | | |
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| 78 | 78 | | 17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 79 | 79 | | |
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| 80 | 80 | | 17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 81 | 81 | | |
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| 82 | 82 | | 17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows:(A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible.(B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed.(2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed.(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 83 | 83 | | |
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| 84 | 84 | | |
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| 85 | 85 | | |
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| 86 | 86 | | 17053.76. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year. |
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| 87 | 87 | | |
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| 88 | 88 | | (b) For purposes of this section, the following definitions shall apply: |
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| 89 | 89 | | |
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| 90 | 90 | | (1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following: |
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| 91 | 91 | | |
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| 92 | 92 | | (A) Waste removal and disposal services. |
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| 93 | 93 | | |
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| 94 | 94 | | (B) Sanitization and restoration of property. |
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| 95 | 95 | | |
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| 96 | 96 | | (C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance. |
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| 97 | 97 | | |
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| 98 | 98 | | (D) Repairs to property caused by damage from encampments or illegal dumping. |
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| 99 | 99 | | |
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| 100 | 100 | | (E) Installation of measures to prevent reencampments or entry, such as riprap or other material. |
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| 101 | 101 | | |
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| 102 | 102 | | (2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property. |
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| 103 | 103 | | |
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| 104 | 104 | | (c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following: |
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| 105 | 105 | | |
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| 106 | 106 | | (1) The condition of the real property prior to cleanup. |
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| 107 | 107 | | |
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| 108 | 108 | | (2) Detailed invoices or receipts from contractors or service providers performing the cleanup. |
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| 109 | 109 | | |
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| 110 | 110 | | (d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section. |
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| 111 | 111 | | |
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| 112 | 112 | | (e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. |
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| 113 | 113 | | |
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| 114 | 114 | | (2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed. |
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| 115 | 115 | | |
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| 116 | 116 | | (B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board. |
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| 117 | 117 | | |
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| 118 | 118 | | (f) (1) For purposes of complying with Section 41, as it pertains to the credit allowed under this section and Section 23688, the Legislature finds and declares as follows: |
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| 119 | 119 | | |
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| 120 | 120 | | (A) The specific goal of the credit is to support businesses, encourage timely action, and ensure properties remain safe and accessible. |
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| 121 | 121 | | |
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| 122 | 122 | | (B) The performance indicators for the Legislature to use to determine if the credit is achieving its stated goal are the number of taxpayers allowed a credit and the total dollar amount of credits allowed. |
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| 123 | 123 | | |
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| 124 | 124 | | (2) (A) The Franchise Tax Board, on or before December 1, 2027, and each taxable year thereafter, shall submit to the Legislature, in compliance with Section 9795 of the Government Code, a report detailing the number of taxpayers allowed a credit pursuant to this section and Section 23688, and the total dollar value of credits allowed. |
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| 125 | 125 | | |
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| 126 | 126 | | (B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542. |
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| 127 | 127 | | |
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| 128 | 128 | | (g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 129 | 129 | | |
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| 130 | 130 | | SEC. 3. Section 23688 is added to the Revenue and Taxation Code, to read:23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 131 | 131 | | |
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| 132 | 132 | | SEC. 3. Section 23688 is added to the Revenue and Taxation Code, to read: |
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| 133 | 133 | | |
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| 134 | 134 | | ### SEC. 3. |
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| 135 | 135 | | |
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| 136 | 136 | | 23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 137 | 137 | | |
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| 138 | 138 | | 23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 139 | 139 | | |
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| 140 | 140 | | 23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following:(A) Waste removal and disposal services.(B) Sanitization and restoration of property.(C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance.(D) Repairs to property caused by damage from encampments or illegal dumping.(E) Installation of measures to prevent reencampments or entry, such as riprap or other material.(2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property.(c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following:(1) The condition of the real property prior to cleanup.(2) Detailed invoices or receipts from contractors or service providers performing the cleanup.(d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section.(e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.(2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.(B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board.(f) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 141 | 141 | | |
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| 142 | 142 | | |
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| 143 | 143 | | |
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| 144 | 144 | | 23688. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the tax, as that term is defined in Section 23036, to a qualified taxpayer an amount equal to the qualified cleanup expenditures paid or incurred during the taxable year. |
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| 145 | 145 | | |
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| 146 | 146 | | (b) For purposes of this section, the following definitions shall apply: |
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| 147 | 147 | | |
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| 148 | 148 | | (1) Qualified cleanup expenditures means costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property in the state. Such costs may include, but are not limited to, the following: |
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| 149 | 149 | | |
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| 150 | 150 | | (A) Waste removal and disposal services. |
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| 151 | 151 | | |
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| 152 | 152 | | (B) Sanitization and restoration of property. |
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| 153 | 153 | | |
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| 154 | 154 | | (C) Security measures necessitated by the cleanup, such as temporary fencing, security gates, or surveillance. |
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| 155 | 155 | | |
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| 156 | 156 | | (D) Repairs to property caused by damage from encampments or illegal dumping. |
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| 157 | 157 | | |
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| 158 | 158 | | (E) Installation of measures to prevent reencampments or entry, such as riprap or other material. |
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| 159 | 159 | | |
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| 160 | 160 | | (2) Qualified taxpayer means a business entity owning or leasing real property in the state impacted by unauthorized encampments, illegal dumping, or abandoned property. |
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| 161 | 161 | | |
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| 162 | 162 | | (c) Upon request of the Franchise Tax Board, a qualified taxpayer shall provide documentation of both of the following: |
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| 163 | 163 | | |
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| 164 | 164 | | (1) The condition of the real property prior to cleanup. |
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| 165 | 165 | | |
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| 166 | 166 | | (2) Detailed invoices or receipts from contractors or service providers performing the cleanup. |
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| 167 | 167 | | |
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| 168 | 168 | | (d) A qualified taxpayer shall certify, under penalty of perjury, that the expenses were incurred for qualifying activities under this section. |
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| 169 | 169 | | |
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| 170 | 170 | | (e) (1) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. |
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| 171 | 171 | | |
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| 172 | 172 | | (2) (A) The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed. |
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| 173 | 173 | | |
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| 174 | 174 | | (B) The adoption of any regulations pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. The regulations shall become effective immediately upon filing with the Secretary of State, and shall remain in effect until revised or repealed by the Franchise Tax Board. |
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| 175 | 175 | | |
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| 176 | 176 | | (f) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 177 | 177 | | |
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| 178 | 178 | | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 179 | 179 | | |
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| 180 | 180 | | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 181 | 181 | | |
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| 182 | 182 | | SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. |
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| 183 | 183 | | |
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| 184 | 184 | | ### SEC. 4. |
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| 185 | 185 | | |
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| 186 | 186 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 187 | 187 | | |
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| 188 | 188 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 189 | 189 | | |
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| 190 | 190 | | SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 191 | 191 | | |
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| 192 | 192 | | ### SEC. 5. |
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