Generators: air pollution regulations: income tax credits.

Plain English Breakdown

The bill did not pass and was signed by the Governor, which means it is no longer in effect.

Emergency Backup Generators: Pollution Rules and Tax Credits

The bill allows temporary exemptions from air pollution rules for emergency backup generators during declared emergencies due to loss of electrical service and provides income tax credits for purchasing these generators.

What This Bill Does

• Exempts the sale and purchase of portable or emergency backup generators from certain air pollution regulations when a state of emergency is declared by the Governor based on an emergency resulting in a loss of electrical service.
• Provides an income tax credit for individuals and small businesses who buy backup generators for use in their homes or commercial properties, with a maximum credit amount of $7,000 per purchase and up to $3,500 allowed each year from 2026 to 2030.

Who It Names or Affects

• People who need backup generators for emergencies like power outages.
• Small businesses that purchase backup generators for their properties.
• The State Air Resources Board, which sets air pollution rules.

Terms To Know

State of Emergency

A situation declared by the Governor when there is a serious threat to public safety or welfare that requires special actions.

Tax Credit

An amount subtracted from the total tax owed, reducing how much someone has to pay in taxes.

Limits and Unknowns

• The bill did not pass and was signed by the Governor.
• It only applies during declared emergencies when electrical service is lost.
• Tax credits are limited to a specific time period from January 1, 2026, to December 31, 2030.

Official Summary Text

AB 14, as introduced, Castillo.
Generators: air pollution regulations: income tax credits.
Existing law, the California Emergency Services Act, sets forth the emergency powers of the Governor under its provisions and empowers the Governor to proclaim a state of emergency for certain conditions, including fire, flood, and severe energy shortage.
Existing law requires the State Air Resources Board to adopt cost-effective and technologically feasible regulations to prohibit engine exhaust and evaporative emissions from new small off-road engines produced on or after a specified date.
This bill would exempt from those regulations and other regulations adopted by the state board the sale and purchase of portable or emergency backup generators during the period of time for which the Governor has proclaimed a state of emergency based on an emergency resulting in a loss of electrical service to any
part of the state.
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, 2026, and before January 1, 2031, equal to the amount incurred by a natural person or a small business, during the taxable year for the purchase of a backup generator, not to exceed $7,000, for use in a residence or commercial property. The bill would limit the credit allowed to $3,500 per taxable year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.

Current Bill Text

Download Bill PDF