Plain English Breakdown
The official text states 'qualified taxpayer, as defined' but does not provide that specific definition in the summary provided.
Tax Credit for Cleanup Costs
This law allows qualified taxpayers to reduce their state personal or corporation income taxes by claiming credits for costs related to removing unauthorized encampments, illegal dumping, and abandoned property between January 1, 2026, and December 31, 2030.
What This Bill Does
- Creates a tax credit against Personal Income Tax or Corporation Tax for qualified cleanup expenditures during taxable years beginning on or after January 1, 2026, and before January 1, 2031.
- Defines eligible costs as those directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
- Requires taxpayers to certify under penalty of perjury that their documented costs are for qualified cleanup expenditures.
- Includes specific goals, purposes, objectives, performance indicators, and data collection requirements required by existing law for new tax spending.
Who It Names or Affects
- Qualified taxpayers who pay California personal or corporation income taxes.
- Local agencies and school districts, as the bill states that no state reimbursement is required for costs mandated by this act.
Terms To Know
- Tax credit
- An amount allowed to be subtracted from the total tax a person or business must pay to the state.
- Qualified cleanup expenditures
- Costs directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
- Penalty of perjury
- A legal punishment that applies if a person makes a false statement under oath or in an official document required by law.
Limits and Unknowns
- The bill does not specify the exact definition of 'qualified taxpayer' beyond stating they are defined within the act.
- The specific dollar amount limit for the credit and detailed documentation requirements are not listed in this summary text.
- The effective date is immediate as a tax levy, but the credits only apply to taxable years starting on or after January 1, 2026.