AB-1354 • 2026

Personal Income Tax Law: credits: insurance.

Taxes

Passed Legislature

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

Sponsor: Wallis (A) , Flora
Last action: 2025-06-05
Official status: From committee: Without further action pursuant to Joint Rule 62(a).
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details on tracking the effects of the tax credit or specifying performance indicators, which were mentioned in the candidate explanation but are not supported by the official source material.

Personal Income Tax Credit for Residential Property Insurance

AB-1354 creates a personal income tax credit for people who pay residential property insurance premiums, starting in 2026 and lasting until 2030.

What This Bill Does

Creates a new tax credit for taxpayers who purchase residential property insurance.
The credit is based on the amount paid for insurance each year, minus what was paid in 2023 for fire insurance.

Who It Names or Affects

People who pay residential property insurance premiums
Taxpayers filing personal income taxes

Terms To Know

taxpayer: A person or business that pays taxes to the government.
residential property insurance: Insurance that covers a home and its contents against damage or loss.

Limits and Unknowns

The bill does not specify how much money will be saved by taxpayers.
It is unclear what the exact impact on state revenue will be over time.

Bill History

2025-06-05 California Legislative Information
From committee: Without further action pursuant to Joint Rule 62(a).
2025-05-05 California Legislative Information
In committee: Set, final hearing. Held under submission.
2025-04-29 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-21 California Legislative Information
In committee: Set, second hearing. Referred to suspense file.
2025-04-07 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2025-03-13 California Legislative Information
Referred to Com. on REV. & TAX.
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 1354, as amended, Wallis.
Personal Income Tax Law: credits: insurance.
The Personal Income Tax Law allows various credits against the tax imposed by that law.
This bill would, for taxable years beginning on or after January 1,
2025,
2026,
and before January 1,
2030,
2031,
allow a credit against that tax to a qualified
taxpayer
taxpayer, as defined,
equal to the amount paid during the taxable year for premium payments made by the taxpayer for a policy of residential property insurance, as defined, minus the base year premium, defined as the premium paid by the taxpayer for a fire insurance policy in the 2023 calendar year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF