AB-1265 • 2026

Income taxes: credits: rehabilitation of certified historic structures.

Housing Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Haney
Last action: 2026-06-03
Official status: In committee: Set, first hearing. Hearing canceled at the request of author.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about changes to the amount of money available for tax credits after January 1, 2027.

Tax Credits for Fixing Old Buildings

AB-1265 creates and modifies income tax credits to help fix up historic buildings in California, with changes starting in 2027.

What This Bill Does

Creates a credit against income taxes for the rehabilitation of certified historic structures from January 1, 2021, until January 1, 2027.
Requires the Legislative Analyst to submit an annual review of these tax credits' effectiveness to the Legislature by January 1, 2027.
Changes the rules for tax credits starting in 2027, removing special benefits like a higher credit rate and limits on allocated funds per year.
Extends the requirement for annual reviews until January 1, 2031.

Who It Names or Affects

People and companies that fix up historic buildings in California.
The Legislative Analyst who will review how well the tax credits work.

Terms To Know

Certified Historic Structures: Buildings or places with historical importance that have been officially recognized by a government agency.
Tax Credit Allocation Committee (CTCAC): A committee in California responsible for allocating tax credits to projects that meet certain criteria.

Limits and Unknowns

The bill does not specify how much money will be available for the tax credits after January 1, 2027.
It is unclear what specific changes will occur with the removal of limits on allocated funds and special benefits like a higher credit rate.

Bill History

2026-06-03 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2026-05-06 California Legislative Information
Referred to Com. on REV. & TAX.
2026-01-27 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-01-26 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 3836.)
2026-01-22 California Legislative Information
Read second time. Ordered to third reading.
2026-01-22 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (January 22).
2026-01-22 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2026-01-22 California Legislative Information
Assembly Rule 63 suspended. (Page 3806.)
2026-01-20 California Legislative Information
Re-referred to Com. on APPR.
2026-01-16 California Legislative Information
Read second time and amended.
2026-01-15 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (January 12).
2026-01-06 California Legislative Information
Re-referred to Com. on REV. & TAX.
2026-01-05 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-05-05 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-04-21 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-10 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-09 California Legislative Information
From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 9). Re-referred to Com. on REV. & TAX.
2025-03-17 California Legislative Information
Re-referred to Coms. on H. & C.D. and REV. & TAX. pursuant to Assembly Rule 96.
2025-03-13 California Legislative Information
Referred to Coms. on REV. & TAX. and H. & C.D.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1265, as amended, Haney.
Income taxes: credits: rehabilitation of certified historic structures.
The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed by those laws, for taxable years beginning on or after January 1, 2021, and before January 1, 2027, for rehabilitation of certified historic structures, as defined, and, under the Personal Income Tax Law, for a qualified residence, as defined. Existing law allows an increased credit of 25% of the qualified rehabilitation expenditures with respect to a certified historic structure meeting any of certain criteria, including a rehabilitated structure that includes affordable housing for lower income households. Existing law requires a taxpayer to receive an allocation from the California Tax Credit Allocation Committee (CTCAC) to be eligible for the credit. Existing law limits the aggregate amount of money that can be allocated for these credits per calendar year and reserves a portion of that
money to be allocated for a qualified residence or for projects less than $1,000,000.
Existing law requires, on an annual basis beginning January 1, 2021, until January 1, 2027, the Legislative Analyst to collaborate with the CTCAC and the Office of Historic Preservation to review the effectiveness of these tax credits, as described.
This bill would require the Legislative Analyst to submit a review of the effectiveness of the tax credits for taxable years beginning on or after January 1, 2025, and before January 1, 2027, to the Legislature, as specified.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2031, would enact a similar credit for the rehabilitation of certified historic structures, as provided. The bill, for tax credits
allocated for those taxable years, would remove the above-described increased credit of 25% and would remove the credit for a qualified residence. The bill would also remove the limit on the amount of money that can be allocated per calendar year, including the above-described reservations.
The bill would also extend the Legislative Analyst’s annual review requirement to January 1, 2031, and would make conforming changes.
Existing law requires any bill authorizing a new tax expenditure, as defined, to include exclusions from income, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill
declares the intent of the Legislature to comply
would include findings and reporting requirements in compliance
with this requirement.
This bill would take effect immediately as a tax levy.

Current Bill Text

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