AB-1726 • 2026

Natural disasters: catastrophe savings accounts: personal income tax.

Taxes

Passed Legislature

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

Sponsor: Calderon
Last action: 2026-05-14
Official status: In committee: Held under submission.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Natural disasters: catastrophe savings accounts: personal income tax.

AB 1726, as introduced, Calderon.

What This Bill Does

AB 1726, as introduced, Calderon.
Natural disasters: catastrophe savings accounts: personal income tax.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction from adjusted gross income for amounts contributed by a qualified taxpayer, as defined, to a catastrophe savings account, in accordance with specified provisions.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-14 California Legislative Information
In committee: Held under submission.
2026-05-14 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 5030.)
2026-05-13 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2026-04-28 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 27). Re-referred to Com. on APPR.
2026-04-27 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-04-21 California Legislative Information
From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 9. Noes 0.) (April 20). Re-referred to Com. on REV. & TAX.
2026-03-16 California Legislative Information
Referred to Coms. on B. & F. and REV. & TAX.
2026-02-06 California Legislative Information
From printer. May be heard in committee March 8.
2026-02-05 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1726, as introduced, Calderon.
Natural disasters: catastrophe savings accounts: personal income tax.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction from adjusted gross income for amounts contributed by a qualified taxpayer, as defined, to a catastrophe savings account, in accordance with specified provisions. The bill would define “catastrophe savings account” to mean a savings account or money market account with a financial institution that, among other requirements, is established to pay for the qualified catastrophe expenses, as defined, of a qualified taxpayer establishing the account, as provided. The bill would subject a qualified taxpayer to a specified penalty if they use a distribution
from a catastrophe savings account to cover an expense other than a qualified catastrophe expense.
The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would provide an exclusion from gross income for interest earned by a catastrophe savings account, as specified.
Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, 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 would include findings and reporting requirements in compliance with this requirement.
This bill would take effect immediately as a tax levy.

Current Bill Text

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