AB-389 • 2026

Personal Income Tax: tax credits: fire-resistant home improvements.

Taxes

Passed Legislature

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

Sponsor: Wallis
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The official source does not specify if there are detailed performance indicators or specific goals, purposes, and objectives that the tax credit will achieve. These details may be included in other parts of the bill text which were not provided.

Fire-Resistant Home Improvements Tax Credit

AB-389 creates a new tax credit for people who make fire-resistant improvements to their homes, allowing up to $400 per year or $2,000 total over five years.

What This Bill Does

Creates a tax credit for taxpayers who spend money on making their homes more resistant to fires.
Limits the credit to $400 per taxable year and up to $2,000 cumulatively over five years.
Requires that people meet certain conditions to qualify for this credit.

Who It Names or Affects

People who make fire-resistant improvements to their homes can get a tax break.

Terms To Know

Tax Credit: A reduction in the amount of taxes someone has to pay.
Qualified Expenses: Spending on specific items or services that meet certain requirements set by law.

Limits and Unknowns

The tax credit only lasts from January 1, 2025, to December 31, 2029.
It is not clear how many people will qualify for this new tax credit.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-05 California Legislative Information
In committee: Set, first hearing. Held under submission.
2025-04-08 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-07 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-03-17 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-02-18 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-04 California Legislative Information
From printer. May be heard in committee March 6.
2025-02-03 California Legislative Information
Read first time. To print.

Official Summary Text

AB 389, as amended, Wallis.
Personal Income Tax: tax credits: fire-resistant home improvements.
The Personal Income Tax Law allows various credits against the taxes imposed by that law.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, and before January 1, 2030, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayer’s qualified expenses, as defined, not to exceed $400 per taxable year, or $2,000 cumulatively.
Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
The bill would also 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