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TAX RELATED

SB 788 (Niello) | Tax preparers: exemptions
Current law requires tax preparers to register with the California Tax Education Council and provide certain written disclosures, with exemptions for licensed accountants. This bill expands the exemption to include a firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the California Board of Accountancy, or is authorized to practice public accountancy.
Status: In the Business, Professions and Economic Development Committee 

ABx 3 (Wallis) | Personal Income Tax: tax credits: fire-resistant home improvements.
This bill would allow a credit against personal income taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, in an amount equal to 40% of the taxpayer’s qualified expenses, not to exceed $400 per taxable year, or $2,000 cumulatively.
Status: Will not move forward

AB 27 (Schiavo) | Personal Income Tax Law: Corporation Tax Law: Chiquita Canyon elevated temperature landfill event: exclusions.
Provides a gross income exclusion for amounts received as payment for losses related to the Chiquita Canyon elevated temperature landfill event in Los Angeles County.
Status: In the Committee on Revenue and Taxation 

AB 53 (Ramos) | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
Excludes for five years up to $20,000 of uniformed services retirement pay and annuity payments from a United States Department of Defense Survivor Benefit Plan received by qualified taxpayers from gross income under the Personal Income Tax Law
Status: In the Committee on Revenue and Taxation

AB 97 (Lackey) | Personal Income Tax Law: Corporation Tax Law: Bobcat Fire: exclusions.
Excludes from gross income amounts received in settlement arising out of the 2020 Bobcat Fire.
Status: In the Committee on Revenue and Taxation 

AB 232 (Calderon) | Natural disasters: catastrophe savings accounts: personal income tax.
Allows an above-the-line deduction for contributions to a "catastrophe savings account" by a "qualified taxpayer" and excludes any interest accruing to the account from gross income, as specified.
Status: In the Committee on Revenue and Taxation 

AB 245 (Gipson) | Property taxation: application of base year value disaster relief.
Existing law allows the transfer of a property's base year value to a comparable replacement within the same county if substantially damaged or destroyed by a Governor-declared disaster, provided it's acquired or built within five years. This bill extends the timeframe to seven years if property was damaged by certain fires. This bill also allows for a fair market value reduction for properties impacted by certain 2025 fires.
Status: In the Committee on Revenue and Taxation 

AB 231 (Ta) | Income and corporation taxes: credits: work opportunity credit
Allows businesses with fewer than five employees, under the Personal Income Tax Law and the Corporation Tax Law, a credit equal to 40% of the wages paid to an employee who has previously been convicted of a felony.
Status: In the Committee on Revenue and Taxation 

AB 376 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.
This bill would provide an exclusion from gross income for a qualified taxpayer for amounts received for costs and losses associated with wildfires, as provided.
Status: In the Committee on Revenue and Taxation 

AB 386 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: credits: student loan payments
Allows a credit to an employer that makes student loan payments on behalf of a full-time employee and excludes from the employee's gross income the amount of those payments made on their behalf
Status: In the Committee on Revenue and Taxation 

AB 389 (Wallis) | Personal Income Tax: tax credits: fire-resistant home improvements
Allows a credit for certain home-hardening measures.
Status: In the Committee on Revenue and Taxation 

AB 397 (Mark González) | Personal Income Tax Law: young child tax credit
Expands the number of taxpayers eligible for the California Young Child Tax Credit by gradually modifying the definition of "qualifying child" to include children over the age of five.
Status: In the Committee on Revenue and Taxation 

AB 398 (Ahrens) | Personal income tax: Earned Income Tax Credit.
Establishes a minimum credit amount of approximately $300 for taxpayers who claim the California Earned Income Tax Credit, as specified.
Status: In the Committee on Revenue and Taxation 

AB 429 (Hadwick) | Personal Income Tax Law: Corporation Tax Law: exclusions: wildfires
Excludes from gross income amounts received by a qualified taxpayer as settlement payments related to certain fires.
Status: In the Committee on Revenue and Taxation 

AB 474 (Ward) | Housing discrimination: nonprofit home-sharing program: income tax exclusion: eligibility for public social services
Exempts income received through renting bedrooms or units through a nonprofit home-sharing program from consideration as income for the purposes of determining eligibility for specified social services and benefits.
Status: In the Revenue and Taxation Committee 

AB 490 (Tangipa) | Personal Income Tax Law: deduction from gross income: car loan interest payments
Allows a deduction for interest paid on a qualified vehicle loan.
Status: In the Committee on Revenue and Taxation 

AB 547 (Tangipa) | Personal Income Tax Law: credits: in vitro fertilization.
The bill allows a tax credit, up to $5,000, for qualified expenses of in vitro fertilization.
Status: In the Committee on Revenue and Taxation 

AB 691 (Wallis) | Personal Income Tax Law: credits: pet adoption and medical expenses
Creates a tax credit of up to $750 for qualified pet adoption and pet medical costs.
Status: In the Committee on Revenue and Taxation 

AB 702 (Ta) | Personal income tax: exclusions: interest income: theft
This bill allows taxpayers to exclude from gross income any interest earned on an investment during the year if that investment is stolen, sold, or transferred without their consent.
Status: In the Committee on Revenue and Taxation 

AB 755 (Tangipa) | Income tax: exclusion: disasters
Provides an exclusion for amounts received as income, not to exceed $300,000 per taxable year, by a qualified taxpayer whose real property, residence, or business was burned or deemed uninhabitable due to a disaster.
Status: Referred to the Committee on Revenue and Taxation

AB 781 (DeMaio) | Charges: health savings accounts: electricity
This bill allows a deduction in computing adjusted gross income in connection with health savings accounts in modified conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year to a health savings account. (This bill also repeals laws related to electric rates).
Status: Referred to the Committee on Revenue and Taxation 

AB 814 (Schiavo) | Personal Income Tax Law: exclusions: law enforcement retirement.
Excludes from gross income peace officer retirement pay and amounts received by the beneficiary of an annuity plan set up for the surviving spouse or dependent of a person that lost their life in services as a peace officer.
Status: In the Committee on Revenue and Taxation

AB 834 (Hadwick) | Personal Income Tax Law: deduction: teachers.
Conform state law with federal law to allow the deduction of certain expenses of elementary and secondary school teachers.
Status: In the Committee on Revenue and Taxation 

AB 838 (Ta) | Taxation: renter’s credit
If specified in a budget bill, this bill would temporarily expand the renter’s tax credit for five years, starting the year funding is approved. Income limits apply.
Status: In the Committee on Revenue and Taxation

AB 918 (Ransom) | Personal Income Tax Law: exclusions: first responders
Excludes from gross income "qualified wages" paid to first responders who are employees of a local agency for work performed in an area subject to a declared state or local emergency as part of the provision of mutual aid, as specified.
Status: Referred to the Committee on Revenue and Taxation 

AB 921(Castillo) | Generators: air pollution regulations: income tax credits
Allows a credit, equal to the amount incurred by a person or a small business, for the purchase of a backup generator, not to exceed $7,000, for use in a residence or commercial property. The bill would limit the credit allowed to $3,500 per taxable year.
Status: Referred to the Committees on Natural Resources and Revenue and Taxation 

AB 976 (Ávila Farías) | Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit
This bill would give businesses operating in a disadvantaged community with total gross annual receipts of no greater than $5,000,000 and with 25 or fewer employees a tax credit for expenses related to retail theft prevention.
Status: In the Committee on Revenue and Taxation 

AB 984 (Nguyen) | Personal income taxes: deductions: CalABLE contributions
Provides an above-the-line deduction for contributions made to a California Achieving a Better Life Experience (ABLE) Act account.
Status: In the Committee on Revenue and Taxation

AB 1057 (Michelle Rodriguez) | Personal Income Tax Law: exclusions: first responders: overtime pay
Creates an exclusion for “qualified overtime wages,” defined to mean overtime wages paid to a qualified taxpayer for work performed directly in response to, or in support of, emergency operations.
Status: In the Committee on Revenue and Taxation 

AB 1124 (Bains) | Personal Income Tax Law: exclusions: first responders: overtime pay
Creates an exclusion for “qualified overtime wages,” defined to mean overtime wages paid to a qualified taxpayer for work performed directly in response to, or in support of, emergency operations.
Status: In the Committee on Revenue and Taxation 

AB 1138 (Zbur) | Income and corporate taxes: tax credits: motion pictures.
Modifies the California Motion Picture Credit 4.0, which will be in place from July 1, 2025 to July 1, 2030, in order to increase the competitiveness of the credit in relation to other states and counties.
Status: In the Committee on Revenue and Taxation 

AB 1219 (Wallis) | Personal income tax: rate
Reduces the Personal Income Tax by 1% across all brackets by decreasing statutorily prescribed income tax rates and adjusting the income thresholds of certain tax brackets.
Status: In the Committee on Revenue and Taxation 

AB 1265 (Haney) | Income taxes: credits: rehabilitation of certified historic structures
This bill extends the availability of the historic home rehabilitation tax credit and increases the tax credit for certain certified historic buildings from 25% to 30% of the cost of approved rehabilitation work.
Status: In the Committee on Revenue and Taxation 

AB 1282 (Jeff Gonzalez) | Personal Income Tax Law: credits: medical expenses
This bill would allow a deduction in income for out-of-pocket medical costs, limited to $5,000.
Status: In the Committee on Revenue and Taxation 

AB 1354 (Wallis) | Personal Income Tax Law: credits: insurance
Allows a credit for premium payments made to residential property insurance policies.
Status: In the Committee on Revenue and Taxation 

AB 1377 (McKinnor) | Income taxes: credits: motion picture credit
Removes the “good-faith effort” standards in the Film and Television Tax Credit 4.0 program related to diversity workplans and diversity goals submitted by motion picture applicants to the California Film Commission.
Status: In the Committee on Revenue and Taxation 

AB 1431 (Tangipa) | Personal income taxes: credit: medical services: rural areas.
Allows a credit for a qualified taxpayer for medical services performed in a rural area, not to exceed $5,000 per taxable year.
Status: In the Committee on Revenue and Taxation 

AB 1443 (Castillo) | Personal income taxes: unemployment insurance: tips
This bill would exclude tips from gross income and would exclude tips from the definition of wages paid for employment for purposes of income tax withholding and for purposes of unemployment insurance and the employment training tax.
Status: In the Committee on Revenue and Taxation 

AB 1435 (Nguyen) | Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs
Allows a credit for qualified cleanup expenditures, defined to mean costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
Status: In the Committee on Revenue and Taxation

AB 1518 (Committee on Revenue and Taxation) | Income taxes: administration: nonresident aliens: identifying numbers: group filing
Current law prevents the Franchise Tax Board from requiring nonresident aliens to provide a Social Security Number or Individual Taxpayer Identification Number if they are not eligible for one. It also allows nonresident aliens to file group tax returns and excludes certain payments made on their behalf from taxable income. This bill would make these provisions permanent.
Status: In the Appropriations Committee

SB 1 (Seyarto) | Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.
Enacts the Military Services Retirement and Surviving Spouse Benefit Payment Act, which excludes two forms of military retirement income from state income tax.
Status: In the Military and Veterans Affairs Committee 

SB 17 (Ochoa Bogh) | Personal income taxes: unemployment insurance: tips.
This bill would exclude tips from income for state tax purposes and remove tips from the definition of wages for employment tax purposes.
Status: In the Committee on Labor, Public Employment and Retirement   

SB 23 (Valladares) | Property taxation: exemption: disabled veteran homeowners.
Enacts a full exemption from property tax for disabled veterans.
Status: In the Military and Veterans Affairs Committee 

SB 56 (Seyarto) | Property taxation: disabled veterans’ exemption: household income.
Provides that “household income” does not include service-connected disability payments when determining whether the low-income disabled veterans exemption applies.
Status: In the Military and Veterans Affairs Committee 

SB 64 (Grove)| Education expenses: School Choice Flex Account Act of 2025
This bill would establish the School Choice Flex Account Act of 2025 only if an unspecified Senate Constitutional Amendment is approved as part of the November 2026 election. If enacted, the bill provides for income tax exclusions.
Status: Failed first Education Committee vote; will receive a second vote  

SB 267 (Choi)| Personal income tax: credit: qualified teacher: school supplies
This bill would allow a tax credit for qualified teachers who purchase instructional materials and classroom supplies, not to exceed $250.
Status: In the Committee on Revenue and Taxation 

SB 268 (Choi) | Income taxes: gross income exclusions: state of emergency: natural disaster settlements
Provide an exclusion for amounts received from a settlement entity by a qualified taxpayer to replace property damaged or destroyed by a natural disaster that was declared a state of emergency by the Governor.
Status: In the Committee on Revenue and Taxation 

SB 269 (Choi) | Personal income taxes: Fire Safe Home Tax Credits Act
Provides credits to a qualified taxpayer for qualified costs relating to qualified home hardening and for qualified costs relating to qualified vegetation management, not to exceed an aggregate amount of $500,000,000 per taxable year. This bill also requires a qualified taxpayer to reserve a credit for these qualified costs to be eligible for the credits and provide all necessary information.
Status: In the Committee on Revenue and Taxation 

SB 296 (Archuleta) | Property taxation: exemption: disabled veteran homeowners
Enacts a full exemption from property tax for disabled veterans.
Status: In the Committee on Military and Veteran’s Affairs 

SB 302 (Padilla) | Personal Income Tax Law and Corporation Tax Law: exclusions: environmental credits
Conforms state law to specific Internal Revenue Code sections added by the Inflation Reduction Act of 2022, relating to renewable energy development.
Status: In the Appropriations Committee 

SB 353 (Alvarado-Gil)| Income tax: credits: food banks.
Extends indefinitely tax credits for food bank donations.
Status: In the Committee on Revenue and Taxation 

SB 376 (Valladares) | Incomplete gift nongrantor trusts: Personal Income Tax Law.
This bill changes the definition of an "incomplete gift nongrantor trust" to exclude charitable remainder trusts.
Status: Referred to the Committee on Revenue and Taxation 

SB 529 (Choi)| Personal income taxes: deduction: California qualified tuition program
Allows limited deductions for contributions to the California qualified tuition program established pursuant to the Golden State Scholarshare Trust Act.
Status: Referred to the Committee on Revenue and Taxation 

SB 566 (Grove) | Real property tax: Personal Income Tax Law: homeowners’ exemption: renter’s credit
This bill would increase the homeowners’ exemption, for certain homeowners, from $7,000 to $50,000 of the full value of a dwelling. It would also increase credits for qualified renters.
Status: Referred to the Committee on Revenue and Taxation

SB 587 (Grayson) | Personal income taxes: credit: manufacturing: sales and use taxes.
Existing law exempts certain personal property purchases from state sales and use tax until July 1, 2030, for qualified buyers using them primarily for manufacturing, recycling, or research. However, local sales and use taxes still apply. This bill provides a tax credit equal to the local sales or use tax paid on purchases that would have been exempt if not for local tax rules.
Status: Referred to the Committee on Revenue and Taxation 

SB 591 (Valladares) | Taxation: electronic funds transfer: penalties
This bill would change the penalty for not making required electronic payments to the Franchise Tax Board. Instead of a 10% penalty, the first violation would result in a $100 fine, and each additional violation would result in a $500 fine, replacing the current 1% penalty.
Status: In the Appropriations Committee. 

SB 628 (Grove) | Employment: employer contributions: employee withholdings: credit: agricultural employees
This bill would create a payroll tax credit to reimburse agricultural employers for overtime wages paid to their agricultural employees.
Status: In the Committee on Labor, Public Employment and Retirement. Failed the first vote, will receive a second. 

SB 630 (Allen) | Income and corporate taxes: tax credits: motion pictures.
Modifies the Motion Picture Credit 4.0 by increasing the amount of qualified expenditures the California Film Commission is allowed, revising the definition of qualified motion picture, limiting the amount of credits received by a recurring television series, and similar changes.
Status: In the Appropriations Committee.  

SB 657 (Niello) | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program
This bill would exempt distributions made from a long-term qualified tuition program that are paid in a direct trustee-to-trustee transfer to a Roth IRA.
Status: Referred to the Committee on Revenue and Taxation 

SB 665 (Choi) | Personal Income Tax Law: Corporation Tax Law: credits: retail security measures
Would allow a credit for retail theft prevention measures, limited to $10,000 annually.
Status: Referred to the Committee on Revenue and Taxation 

SB 666 (Choi) | Personal income tax: credit: home security surveillance
Would allow a tax credit, not to exceed $250, for the purchase and installation of a security surveillance system at the taxpayer’s principal California based single-family residence.
Status: Referred to the Committee on Revenue and Taxation 

SMALL BUSINESS RELATED

AB 265 (Caloza) | Small Business and Nonprofit Recovery Fund Act.
Appropriates $100,000,000 to a newly-created Small Business Recovery Fund for a competitive grant program for small businesses and nonprofit organizations directly impacted by a state of emergency proclaimed by the Governor.
Status: In the Appropriations Committee 

AB 685 (Solache) | Los Angeles and Ventura Wildfire Small Business Recovery Act
Establishes the Los Angeles and Ventura Wildfire Small Business Recovery Act to provide assistance to small businesses directly impacted by the January 2025 wildfires in the Counties of Los Angeles and Ventura.
Status: Referred to the Committee on Economic Development, Growth, and Household Impact 

AB 1519 (Committee on Revenue and Taxation) Direct File: employment: notice
Requires employer notifications to all employees about specified income tax filing assistance programs to also include information regarding Direct File.
Status: Passed the Committee on Revenue and Taxation 

AB 713 (Solache) | Public postsecondary education: student employment.
Bill amended; now relates to state universities and colleges. 

SB 70 (Seyarto) | Public contracts: Small Business Procurement and Contract Act.
This bill increases, from $250,000 to $350,000, the maximum estimated value of a contract awarded pursuant to the Small Business Procurement and Contract Act which allows state agencies to award a contract to a certified small business or to a disabled veteran business enterprise without complying with competitive bidding requirements.
Status: In the Appropriations Committee 

SB 590 (Durazo) | Paid family leave: eligibility: care for designated persons
Expands eligibility for benefits under the Paid Family Leave program to include individuals who take time off work to care for a seriously ill designated person, as defined.
Status: In the Appropriations Committee  

SB 705 (Hurtado) | Small businesses: certification. “Placeholder” bill
This bill is not expected to move forward. 

SB 816 (Valladares) | Taxation: corporations: minimum franchise tax: limited liability companies: annual tax: microbusinesses
Exempts microbusinesses incorporated in California from the minimum franchise tax.
Status: Referred to the Committee on Revenue and Taxation