AB-1606 • 2026

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: 2026-04-06
Official status: In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details about the amount of the credit or which local agencies and school districts would benefit from this law.

Tax Credits for Cleanup Costs

AB-1606 allows businesses and individuals to get tax credits for costs related to cleaning up unauthorized encampments, illegal dumping, and abandoned property from January 1, 2027, to December 31, 2031.

What This Bill Does

Allows a tax credit for cleanup expenses from January 1, 2027, to December 31, 2031.
Defines qualified cleanup expenses as the cost of removing and disposing of unauthorized encampments, illegal dumping, and abandoned property.
Requires taxpayers to prove under penalty of perjury that their costs are for these specific cleanup activities.

Who It Names or Affects

Businesses and individuals who spend money on cleaning up unauthorized encampments, illegal dumping, and abandoned property.

Terms To Know

Qualified Cleanup Expenses: Costs directly related to the removal and disposal of unauthorized encampments, illegal dumping, and abandoned property.
Tax Credit: A reduction in the amount of tax a person or business has to pay.

Limits and Unknowns

The bill does not specify how much the credit will be.
It is unclear which local agencies and school districts would benefit from this law.

Bill History

2026-04-06 California Legislative Information
In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
2026-03-16 California Legislative Information
In committee: Set, first hearing. Hearing canceled at the request of author.
2026-02-02 California Legislative Information
Referred to Com. on REV. & TAX.
2026-01-21 California Legislative Information
From printer. May be heard in committee February 20.
2026-01-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1606, as introduced, 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, 2027, and before January 1, 2032, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenses. The bill would define qualified cleanup expenses for this purpose to mean costs directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned 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 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