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

Senator Choi's retail security tax credit proposal would allow California retailers to claim up to $10,000 annually for theft prevention equipment purchases between 2025 and 2029. The credit would apply to security cameras, lighting, locks, alarms, access control systems, and license plate readers installed at retail locations.

The measure establishes different qualifying thresholds based on business size. Retailers with 25 or fewer full-time equivalent employees must spend over $300 per location to claim the credit, while larger operations face a $500 minimum expenditure requirement. Eligible businesses include those classified under retail trade codes 441-459999 in the North American Industry Classification System.

Unused portions of the credit could carry forward for up to seven years. The Franchise Tax Board would track usage metrics, including the number of claimants and total credits awarded, with initial reporting to the Legislature due April 2028. The program contains a December 2030 sunset date, at which point both the personal income and corporate tax provisions would be repealed.