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

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Property Related

AB 1611(Haney) | Taxation: capital gains and losses: single-family rental homes.
Prohibits the application of a 1031 exchange for anyone owning 50 or more single-family rental homes in California.
Latest status: Introduced on Jan. 20 

AB 1620 (Sanchez) | Personal Income Tax Law: deductions: homeowners’ insurance premiums
Allows a deduction on the cost of a homeowners insurance premium for a primary residence.
Latest status: Introduced on Jan. 22 

SB 288 (Seyarto) | Property taxation: change in ownership: family homes and farms.
Currently, when a parent or grandparents transfers a home to a child or grandchild, the transfer does not count as a change in ownership for tax purposes if certain conditions are met, including one-year deadlines for taking up primary residence and filing exemptions. This bill states that if the parent or grandparent dies, the one‑year clock doesn’t start until the court officially determines who owns the property.
Latest status: Passed the Senate Appropriations Committee

SB 623 (Archuleta) | Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions
If a related Senate Constitutional Amendment is approved by voters in November 2026, homeowners would be allowed to claim both the homeowners’ exemption and the veterans’ exemption or the disabled veterans’ exemption on the same property.
Latest status: Passed the Senate Approporiations Committee 

SB 888 (Seyarto) | Property taxation: disabled veterans’ exemption: household income
States that service-connected disability payments will not count as household income as applied to the disabled veterans’ property taxation exemption.
Latest status: Introduced on Jan. 14 

Small Business-Related

AB 685 (Solache) | Small Business Resiliency and Innovation Act
Creates the Small Business Resiliency and Innovation Fund to provide assistance to small businesses.
Latest status: Passed the Assembly Appropriations Committee 

SB 347 (Choi) | Annual tax: partnerships and LLCs
Reduces the annual tax on every limited partnership, limited liability partnership, and limited liability company from $800 to $600.
Latest status: Held in the Senate Appropriations Committee

Tax Credits/Deductions

AB 1265 (Haney) | Income taxes: credits: rehabilitation of certified historic structures
Allows the current state historic tax credit program’s statutory provisions to expire on December 31, 2027, and authorizes a similar tax credit program, with modifications, to be effective from January 1, 2027, to January 1, 2031.
Latest status: Passed the Assembly Appropriations Committee 

AB 1550 (Sanchez) | Personal income taxes: deductions: tips: overtime compensation
Conforms California law with federal law such that workers can deduct qualifying tips and qualifying overtime pay on top of the standard deduction, rather than choosing one.
Latest status: Introduced on Jan. 7 

AB 1565 (Ta) | Income and corporation taxes: credits: work opportunity credit
Provides businesses with a tax credit for hiring people who have recently been convicted of a felony or recently released from prison. The tax credit would equal 40% of the wages the business pays that employee during the year.
Latest status: Introduced on Jan. 12 

SB 881(McNerney) | Income taxation: credits: voluntary contributions: food bank donations
Extends by six years the tax credit for food bank donations.
Latest status: Introduced on Jan. 12 

AB 1606 (Nguyen) | Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.
Provides a one-time tax credit to business entities owning or leasing commercial property for money spent on cleanup costs associate with unhoused encampments.
Latest status: Introduced on Jan. 20

Worker’s Compensation

AB 1576 (Ortega) | Workers’ compensation: Subsequent injuries payments
Relates to the Subsequent Injuries Benefits Trust Fund and clarifies how disability should be measured for workers who suffer a second injury and adds new rules around second injuries occurring after 2027.
Latest status: Introduced on Jan. 12