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SB-665 • 2026

Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.

Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.

Taxes
Passed Legislature

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

Sponsor
Choi
Last action
2026-02-02
Official status
Returned to Secretary of Senate pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Retail Security Tax Credit

The bill allows businesses to claim a tax credit for costs related to preventing retail theft, with limits and reporting requirements.

What This Bill Does

  • Allows businesses to claim a tax credit for costs related to preventing retail theft starting in 2025.
  • Limits the tax credit to $10,000 per year for each business.
  • Requires detailed information about how the tax credit will help achieve specific goals and objectives.

Who It Names or Affects

  • Businesses that qualify as 'qualified taxpayers' under the bill's rules.

Terms To Know

Qualified taxpayer
A business that meets certain requirements set by the bill to be eligible for a tax credit.
Tax expenditure
Money the government does not collect in taxes because of tax credits or other breaks.

Limits and Unknowns

  • The exact businesses that will qualify as 'qualified taxpayers' are not clearly defined.
  • It is unclear how the effectiveness of these security measures will be measured and reported.

Bill History

  1. 2026-02-02 California Legislative Information

    Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. 2025-05-14 California Legislative Information

    May 14 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 1083.) Reconsideration granted.

  3. 2025-05-07 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  4. 2025-03-18 California Legislative Information

    Set for hearing May 14.

  5. 2025-03-05 California Legislative Information

    Referred to Com. on REV. & TAX.

  6. 2025-02-21 California Legislative Information

    From printer. May be acted upon on or after March 23.

  7. 2025-02-20 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 665, as amended, Choi.
Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.
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, 2025, and before January 1, 2030, would allow a credit against those taxes to a qualified taxpayer, as defined, for retail theft prevention measures, as specified. The bill would limit the credit allowed to a taxpayer to no more than $10,000 per taxable year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives 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.

Current Bill Text

Read the full stored bill text 
Download Bill PDF