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: 2026-01-27
Official status: In Senate. Read first time. To Com. on RLS. for assignment.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on the goals, purposes, objectives, performance indicators, or data collection requirements for measuring the effectiveness of these tax credits beyond the requirement for annual reviews until January 1, 2027.

Tax Credits for Fixing Old Buildings

AB-1265 creates and modifies tax credits to encourage the repair of historic buildings in California, with special focus on affordable housing.

What This Bill Does

Creates a tax credit for people who fix up old buildings that are considered historically important.
Increases this credit by 25% if the building includes homes for lower-income families.
Requires yearly reviews to check how well these credits work from 2021 to 2027.
Removes special rules and limits on tax credits starting in 2027, making it easier to get money for fixing historic buildings.

Who It Names or Affects

People who own or fix up old buildings
Lower-income families living in affordable housing within restored historic structures

Terms To Know

Certified Historic Structures: Buildings that have been officially recognized for their historical importance.
Tax Credit Allocation Committee (CTCAC): A group in California that decides how tax credits are given out.

Limits and Unknowns

The bill does not specify who will receive the tax credits after 2027.
It is unclear if there will be enough money to fund all eligible projects under the new rules starting in 2027.
Details about how the effectiveness of these tax credits will be measured are not fully explained.

Bill History

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

Read the full stored bill text

Download Bill PDF