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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: Referred to the Revenue & Taxation Committee
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: In the Revenue & Taxation Committee
AB 2394 (Lee) | Personal Income Tax Law: exclusions: real property.
Creates a personal income tax exclusion for persons over 65 who have owned their property for at least 20 consecutive years.
Latest status: Referred to the Revenue & Taxation Committee
SB 288 (Seyarto) | Property taxation: change in ownership: family homes and farms.
Specifies that the one-year period to claim an intergenerational transfer change in ownership exclusion is deemed to commence on the effective date of a probate court’s determination of the final ownership of property.
Latest status: In the Assembly
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: In the Assembly
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: Set for policy committee hearing – March 25
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: In the Senate
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: Will not move forward
Income and/or Corporate Tax
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: In the Senate
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: In the Revenue & Taxation Committee
AB 1565 (Ta) | Income and corporation taxes: credits: work opportunity credit
Allows businesses with fewer than five employees a credit, under the Personal Income Tax Law and the Corporation Tax Law, equal to 40% of the wages paid to an employee who has previously been convicted of a felony.
Latest status: In the Revenue & Taxation Committee
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 associated with unhoused encampments.
Latest status: In the Revenue & Taxation Committee
AB 1690 (Ahrens) | Personal Income Tax Law: young child tax credit
Expands the Young Child Tax Credit by raising the maximum age of a “qualifying child” over time.
Latest status: In the Revenue & Taxation Committee
AB 1698 (Alanis) | Personal Income Tax Law: Corporation Tax Law: credits: food handler card
Applicable to both personal and corporate tax, allows a credit equal to all costs incurred by a "qualified taxpayer" in obtaining legally required food handler cards for their employees.
Latest status: In the Revenue & Taxation Committee
AB 1714 (Tangipa) | Personal income tax: credit: first-time homebuyer program: required repairs
Creates a new California personal income tax credit for sellers who must complete certain repairs required to close a sale when the buyer is using a first‑time homebuyer assistance program.
Latest status: In the Revenue & Taxation Committee
AB 1726 (Calderon) | Natural disasters: catastrophe savings accounts: personal income tax
Creates a new temporary tax deduction and interest exclusion for Californians who save money in a special “catastrophe savings account” to prepare for natural disasters.
Latest status: Referred to the Banking & Finance and Revenue & Taxation Committees
AB 2016 (Gonzalez) | Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay
Expands Personal Income Tax exclusions for military retirement pay, and Survivor Benefit Plan annuity payments.
Latest status: Referred to the Revenue & Taxation Committee
AB 2084 (Bauer-Kahan) | Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status.
Changes how California handles the revocation of state tax‑exempt status when a nonprofit loses its federal tax‑exempt status. This bill establishes a notice and cure period, rather than an automatic revocation.
Latest status: Referred to the Revenue & Taxation Committee
AB 2186 (McKinnor) | Personal Income Tax Law: exclusions: reparations programs
Creates a temporary state income tax exclusion for reparations payments.
Latest status: In the Revenue & Taxation Committee
AB 2205 (Quirk-Silva) | Personal Income Tax Law: Corporation Tax Law: New Employment Credit.
Extends the New Employment Credit for five additional years
Latest status: In the Revenue & Taxation Committee
AB 2222 (Ward) | Personal Income Tax Law and Corporation Tax Law: credits: local news organizations
To support local news organizations, this bill offers refundable tax credits to “qualified taxpayers” for hiring and retaining journalists.
Latest status: In the Revenue & Taxation Committee
AB 2270 (Arambula) | Low-income housing tax credit: farmworker housing
Updates California’s Low‑Income Housing Tax Credit (LIHTC) rules specifically for farmworker housing projects
Latest status: Referred to the Revenue & Taxation and Housing & Community Development Committees
AB 2319 (Schultz) | Personal Income Tax Law: Corporation Tax Law: credits: qualified motion picture: postproduction.
Creates a new refundable tax credit specifically for California-based postproduction work.
Latest status: In the Arts, Entertainment, Sports & Tourism Committee
AB 2336 (Macedo) | Personal Income Tax Law: exclusions from income: retirement: overtime
This bill would exclude up to $25,000 of overtime pay and up to $25,000 of defined benefit pension income from state taxable income.
Latest status: Referred to the Revenue & Taxation Committee
AB 2377 (Soria) | Tax incentives: Personal Income Tax Law and Corporation Tax Law: deductions: accelerated depreciation for new manufacturing operations.
Creates a temporary, accelerated depreciation deduction for certain manufacturing‑related businesses.
Latest status: In the Revenue & Taxation Committee
AB 2403 (Elhawary) | Income tax: credits: commercial production.
Creates a new state income tax credit for companies that produce qualified commercials in California.
Latest status: In the Revenue & Taxation Committee
AB 2427 (Tangipa) | Personal Income Tax Law: Corporation Tax Law: tax credits: farming
Creates new tax credits for agricultural businesses to support farming operations, equipment investment, and work performed in high fire‑risk areas.
Latest status: In the Revenue & Taxation Committee
AB 2444 (Michelle Rodriguez) | Personal Income Tax Law: qualified tuition program
This bill updates California’s personal income tax law to conform to new federal rules allowing certain 529 plan transfers to Roth IRAs and creates a new state tax deduction for contributions to the state’s 529 plan (ScholarShare).
Latest status: Referred to the Revenue & Taxation Committee
AB 2533 (Tangipa) | Personal Income Tax Law: exclusions: fitness benefit
Excludes from gross income any employer-provided qualified fitness benefit, including gym fees.
Latest status: Referred to the Revenue & Taxation Committee
AB 2591(Bains) | Personal income tax: standard deduction: federal poverty level
Creates the “Taxing Californians into Poverty Protection Act” and replaces California’s current standard deduction with a new deduction equal to the federal poverty level for the taxpayer’s household size.
Latest status: Referred to the Revenue & Taxation Committee
AB 2673 (Celeste Rodriguez) | Personal Income Tax Law: Corporation Tax Law: credit: childcare
Creates a new tax credit allowing taxpayers to claim 50% of “qualified contributions to promote childcare.”
Latest status: Referred to the Revenue & Taxation Committee
SB 881(McNerney) | Income taxation: credits: voluntary contributions: food bank donations
Extends by six years the tax credit for food bank donations.
Latest status: In the Revenue & Taxation Committee
SB 921(Grove) | Employment: employer contributions: employee withholdings: credit: agricultural employees
Creates a new employer credit for agricultural overtime. Agricultural employers may claim a credit equal to the overtime wages paid each quarter.
Latest status: Referred to the Labor, Public Employment & Retirement Committee
SB 984 (Ochoa Bogh) | Personal Income Tax Law: deductions: tips.
Allows taxpayers to deduct qualified tips from their taxable income, matching a temporary federal deduction that exists through 2028.
Latest status: Referred to the Revenue & Taxation Committee
SB 1045 (Strickland) | Personal income tax
A spot bill related to income tax.
Latest status: Not moving
SB 1084 (Alvarado-Gil) | Personal income taxes: Fire Safe Home Tax Credits Act
Creates two new personal income tax credits to help homeowners in fire‑prone areas pay for home hardening and vegetation management.
Latest status: Referred to the Revenue & Taxation Committee
SB 1096 (Dahle) | Personal income tax: senior tax credit
This bill creates a new $1,500 credit for taxpayers that are (or their spouse is) 65 years or older and have no earned income.
Latest status: Referred to the Revenue & Taxation Committee
SB 1102 (Dahle) | Personal Income Tax Law: credit: nurses
Creates a new personal income tax credit for licensed nurses working in rural health facilities.
Latest status: Referred to the Revenue & Taxation Committee
SB 1113 (Valladares) | Corporation taxes
A spot bill related to corporate tax.
Latest status: Not moving
SB 1118 (Alvarado-Gil) | Personal Income Tax Law: Corporation Tax Law: tax credits: backup generators: solar batteries.
Creates new income tax and corporation tax credits to encourage the purchase of backup electricity generators and solar batteries in high‑risk wildfire areas.
Latest status: Referred to the Revenue & Taxation Committee
SB 1120 (McNerney) | Personal Income Tax Law: Corporation Tax Law: credits: CalCompetes
Expands the California Competes Tax Credit program and allows certain taxpayers in “strategic industries” to elect to make their CCTC refundable. “Strategic industry” means industries involved in developing nuclear fusion technologies, quantum technology, or other industries identified in the California Jobs First State Economic Blueprint.
Latest status: Referred to the Revenue & Taxation Committee
SB 1137 (Valladares) | Personal income tax: deduction: medical expenses
Lowers the medical expense deduction threshold for state personal income tax from 7.5% to 4% of federal AGI.
Latest status: Referred to the Revenue & Taxation Committee
SB 1144 (Valladares) | Personal income taxes: exemption credit: dependents.
Increases the dependent exemption credit from $475 to $700 per dependent.
Latest status: Referred to the Revenue & Taxation Committee
SB 1249 (Richardson) | Personal income taxes: deductions: elderly senior dependents.
Creates a new state income tax deduction for taxpayers who support elderly senior dependents.
Latest status: Referred to the Revenue & Taxation Committee
SB 1277 (Grove) | Taxation: Personal Income Tax Law: cost-of-living refundable tax credit
Establishes a refundable personal income tax credit available to California residents.
Latest status: Referred to the Revenue & Taxation Committee
SB 1343 (Dahle) | Income tax credit: sales and use tax paid: natural disasters
Creates a temporary personal income tax credit to reimburse Californians for sales and use tax paid on certain items needed to rebuild a primary residence after a Governor‑declared natural disaster.
Latest status: Referred to the Revenue & Taxation Committee
SB 1407 (Archuleta) | Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay
Expands personal income tax exclusions for military retirement pay, and Survivor Benefit Plan annuity payments.
Latest status: Referred to the Revenue & Taxation and Military & Veteran’s Affairs Committees
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: Referred to the Insurance Committee
Other Bills of Interest
AB 1790 (Connolly) | Corporations Tax Law: water’s-edge election: global intangible low-taxed income
Repeals the current water’s-edge election and moves the state toward mandatory worldwide combined reporting.
Latest status: Referred to the Revenue & Taxation Committee
AB 2650 (Pellerin) | CalSavers: retirement savings
Updates and expands the CalSavers Retirement Savings Program, which requires certain California employers to offer employees access to a state‑facilitated IRA program when the employer does not provide its own retirement plan.
Latest status: Referred to the Committee of Labor & Employment
SB 1349 (Gonzalez) | Taxation: tax expenditures: California Tax Expenditure Review Board
Creates a new California Tax Expenditure Review Board to evaluate the state’s largest tax expenditures (ie: credits, deductions, exemptions) and recommend whether they should be continued, modified, or repealed.
Latest status: Referred to the Revenue & Taxation and Government Organization Committees
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