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

Plain English Breakdown

The bill's status indicates that it did not become law as it died at the desk.

Fire-Resistant Home Improvements Tax Credit

The bill proposes allowing taxpayers to get a credit on their taxes for making fire-resistant home improvements starting in 2025.

What This Bill Does

• Proposes creating a tax credit for people who make fire-resistant home improvements starting in 2025 and ending before January 1, 2030.
• Limits the credit to $400 per year or up to $2,000 total over five years.
• Defines 'qualified expenses' as costs related to making homes more resistant to fires.

Who It Names or Affects

• Taxpayers who make fire-resistant home improvements in California starting from January 1, 2025.

Terms To Know

Qualified expenses

Money spent on making homes more resistant to fires, as defined by the bill.

Tax credit

A reduction in the amount of tax a person has to pay.

Limits and Unknowns

• The bill did not pass and was signed off without becoming law.
• It only applies if it becomes law, which it currently hasn't.

Official Summary Text

AB 3, as introduced, 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

Download Bill PDF