Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.

Crime Education Taxes

Passed Legislature

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

Sponsor: Nguyen
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 official source does not provide specific details on the amount of tax credit businesses can receive.

Tax Credits for Cleanup Costs

AB-1435 allows businesses to receive tax credits for qualified cleanup expenditures related to unauthorized encampments, illegal dumping, and abandoned property from January 2026 to December 2030.

What This Bill Does

Allows a business to receive a tax credit if they spend money on qualified cleanup activities between January 1, 2026, and December 31, 2030.
Defines 'qualified cleanup expenditures' as costs directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
Requires businesses to certify under penalty of perjury that their expenses are for qualified cleanup activities.

Who It Names or Affects

Businesses that spend money on cleaning up unauthorized encampments, illegal dumping, or abandoned property.

Terms To Know

Qualified Cleanup Expenditures: Money spent on the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
Tax Credit: A reduction in the amount of tax a business has to pay based on certain expenses or activities.

Limits and Unknowns

The bill does not specify how much money businesses can get as a tax credit.
It is unclear if there will be any state reimbursement for local agencies and school districts due to this law.

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 1435, as amended, Nguyen.
Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup
expenditures.
expenses.
The bill would define qualified cleanup
expenditures
expenses
for this purpose to mean costs directly
related to the
one-time
removal and disposal of unauthorized encampments, illegal dumping, and abandoned
property.
property, as provided.
The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup
expenditures.
expenses.
The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program.
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.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF