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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 389Introduced by Assembly Member Wallis(Coauthors: Assembly Members Alanis, Castillo, Chen, Davies, DeMaio, Dixon, Essayli, Flora, Gallagher, Jeff Gonzalez, Hadwick, Lackey, Macedo, Patterson, Sanchez, Ta, and Tangipa)February 03, 2025An act to add and repeal Section 17053.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 389, as introduced, Wallis. Personal Income Tax: tax credits: fire-resistant home improvements. The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $400 per taxable year, or $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read:17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.SEC. 2. 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 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 389Introduced by Assembly Member Wallis(Coauthors: Assembly Members Alanis, Castillo, Chen, Davies, DeMaio, Dixon, Essayli, Flora, Gallagher, Jeff Gonzalez, Hadwick, Lackey, Macedo, Patterson, Sanchez, Ta, and Tangipa)February 03, 2025An act to add and repeal Section 17053.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 389, as introduced, Wallis. Personal Income Tax: tax credits: fire-resistant home improvements. The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $400 per taxable year, or $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly April 07, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Assembly April 07, 2025 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 389 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member Wallis(Coauthors: Assembly Members Alanis, Castillo, Chen, Davies, DeMaio, Dixon, Essayli, Flora, Gallagher, Jeff Gonzalez, Hadwick, Lackey, Macedo, Patterson, Sanchez, Ta, and Tangipa)February 03, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Wallis(Coauthors: Assembly Members Alanis, Castillo, Chen, Davies, DeMaio, Dixon, Essayli, Flora, Gallagher, Jeff Gonzalez, Hadwick, Lackey, Macedo, Patterson, Sanchez, Ta, and Tangipa) | |
| 18 | 18 | February 03, 2025 | |
| 19 | 19 | ||
| 20 | 20 | An act to add and repeal Section 17053.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 389, as | |
| 26 | + | AB 389, as introduced, Wallis. Personal Income Tax: tax credits: fire-resistant home improvements. | |
| 27 | 27 | ||
| 28 | 28 | The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $400 per taxable year, or $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy. | |
| 29 | 29 | ||
| 30 | 30 | The Personal Income Tax Law allows various credits against the taxes imposed by that law. | |
| 31 | 31 | ||
| 32 | 32 | This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $400 per taxable year, or $2,000 cumulatively. | |
| 33 | 33 | ||
| 34 | 34 | Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. | |
| 35 | 35 | ||
| 36 | 36 | The bill would also include additional information required for any bill authorizing a new tax expenditure. | |
| 37 | 37 | ||
| 38 | 38 | This bill would take effect immediately as a tax levy. | |
| 39 | 39 | ||
| 40 | 40 | ## Digest Key | |
| 41 | 41 | ||
| 42 | 42 | ## Bill Text | |
| 43 | 43 | ||
| 44 | - | The people of the State of California do enact as follows:SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read:17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up | |
| 44 | + | The people of the State of California do enact as follows:SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read:17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 45 | 45 | ||
| 46 | 46 | The people of the State of California do enact as follows: | |
| 47 | 47 | ||
| 48 | 48 | ## The people of the State of California do enact as follows: | |
| 49 | 49 | ||
| 50 | - | SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read:17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up | |
| 50 | + | SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read:17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. | |
| 51 | 51 | ||
| 52 | 52 | SECTION 1. Section 17053.4 is added to the Revenue and Taxation Code, to read: | |
| 53 | 53 | ||
| 54 | 54 | ### SECTION 1. | |
| 55 | 55 | ||
| 56 | - | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up | |
| 56 | + | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. | |
| 57 | 57 | ||
| 58 | - | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up | |
| 58 | + | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. | |
| 59 | 59 | ||
| 60 | - | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up | |
| 60 | + | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: (A) A Class A fire rated roof.(B) Enclosed eaves.(C) Fire-resistant vents.(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. | |
| 61 | 61 | ||
| 62 | 62 | ||
| 63 | 63 | ||
| 64 | 64 | 17053.4. (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to 40 percent of the taxpayers qualified expenses, subject to subdivision (c). | |
| 65 | 65 | ||
| 66 | 66 | (b) For purposes of this section, the following definitions apply: | |
| 67 | 67 | ||
| 68 | 68 | (1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayers primary residence, including, but not limited to, the following: | |
| 69 | 69 | ||
| 70 | 70 | (A) A Class A fire rated roof. | |
| 71 | 71 | ||
| 72 | 72 | (B) Enclosed eaves. | |
| 73 | 73 | ||
| 74 | 74 | (C) Fire-resistant vents. | |
| 75 | 75 | ||
| 76 | 76 | (D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up. | |
| 77 | - | ||
| 78 | - | (E) Exterior wall covering that is noncombustible. | |
| 79 | 77 | ||
| 80 | 78 | (2) Qualified taxpayer means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following: | |
| 81 | 79 | ||
| 82 | 80 | (A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less. | |
| 83 | 81 | ||
| 84 | 82 | (B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less. | |
| 85 | 83 | ||
| 86 | 84 | (c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year. | |
| 87 | 85 | ||
| 88 | 86 | (d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted. | |
| 89 | 87 | ||
| 90 | 88 | (e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following: | |
| 91 | 89 | ||
| 92 | 90 | (A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California. | |
| 93 | 91 | ||
| 94 | 92 | (B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed. | |
| 95 | 93 | ||
| 96 | 94 | (2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code. | |
| 97 | 95 | ||
| 98 | 96 | (3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542. | |
| 99 | 97 | ||
| 100 | 98 | (f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. | |
| 101 | 99 | ||
| 102 | 100 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 103 | 101 | ||
| 104 | 102 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 105 | 103 | ||
| 106 | 104 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 107 | 105 | ||
| 108 | 106 | ### SEC. 2. |