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

Assembly Member Wallis and seventeen coauthors have put forward a tax credit proposal allowing California homeowners in high-risk fire zones to claim up to $400 annually for fire-resistant home improvements, with a lifetime maximum of $2,000. The credit would cover 40% of qualifying expenses for modifications like Class A fire-rated roofs, enclosed eaves, fire-resistant vents, noncombustible exterior walls, and proper ground clearance.

The credit would be available from 2025 through 2029 to residents of areas designated as high or very high fire hazard severity zones by the State Fire Marshal. Income limits restrict eligibility to joint filers earning $250,000 or less annually and individual filers earning $125,000 or less. Unused portions of the credit could carry forward for up to three years. The Franchise Tax Board must analyze usage patterns and report findings to the Legislature by December 2030, tracking both the number of taxpayers claiming the credit and average claim amounts.

The measure includes specific performance metrics to evaluate whether it achieves its stated purpose of offsetting costs for homeowners who undertake wildfire mitigation improvements. The credit would sunset on December 1, 2030, requiring legislative action to extend it beyond that date.