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AB-895 • 2026

Personal Income Tax Law: Corporation Tax Law: credits: fast food restaurants.

Personal Income Tax Law: Corporation Tax Law: credits: fast food restaurants.

Taxes
Passed Legislature

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

Sponsor
Blanca Rubio
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 material does not provide details on the specific requirements for eligibility or the exact goals of the tax credit beyond its creation.

Tax Credit for Fast Food Restaurants

AB-895 allows certain fast food restaurant owners and franchisees to receive a tax credit of $12,000 per qualified restaurant from January 1, 2026, to December 31, 2030.

What This Bill Does

  • Creates a new tax credit for certain fast food restaurants starting in 2026.
  • Gives eligible taxpayers $12,000 per qualified restaurant as a tax credit each year from 2026 to 2030.

Who It Names or Affects

  • Fast food restaurant owners and franchisees who meet certain requirements.

Terms To Know

Tax Credit
A reduction in the amount of taxes a person or business has to pay.
Qualified Taxpayer
Fast food restaurant owners and franchisees who can get the tax credit.

Limits and Unknowns

  • The bill does not specify exactly how many restaurants will qualify for this credit.
  • It is unclear what specific goals the tax credit aims to achieve beyond helping fast food businesses.

Bill History

  1. 2026-02-02 California Legislative Information

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. 2026-01-31 California Legislative Information

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. 2025-05-05 California Legislative Information

    In committee: Set, second hearing. Held under submission.

  4. 2025-04-07 California Legislative Information

    In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  5. 2025-03-25 California Legislative Information

    Re-referred to Com. on REV. & TAX.

  6. 2025-03-24 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  7. 2025-03-24 California Legislative Information

    Referred to Com. on REV. & TAX.

  8. 2025-02-20 California Legislative Information

    From printer. May be heard in committee March 22.

  9. 2025-02-19 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 895, as amended, Blanca Rubio.
Cannabis.
Personal Income Tax Law: Corporation Tax Law: credits: fast food restaurants.
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 qualified taxpayers, defined to mean certain fast food restaurant franchisees or independent operators, in the amount of $12,000 per qualified fast food restaurant, as defined.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals 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.
This
bill would take effect immediately as a tax levy.
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and requires the Department of Cannabis Control to administer its provisions. Under MAUCRSA, the Department of Cannabis Control has sole authority to license and regulate commercial cannabis activity, which MAUCRSA defines to include, among other activities, the sale of cannabis and cannabis products. MAUCRSA prohibits a licensee from giving away any amount of cannabis or
cannabis product as part of a business promotion or other commercial activity, as specified.
This bill would make a nonsubstantive change to an exception to that prohibition.

Current Bill Text

Read the full stored bill text 
Download Bill PDF