Personal Income Tax Law: credits: insurance.
- Establishes a new tax credit for California homeowners to offset rising residential property insurance costs.
- Provides credits for insurance premium increases above 2023 baseline costs through 2031.
- Limits eligibility to primary residences purchased before 2024 and households earning under $300,000 annually.
- Requires annual reporting starting July 2028 to track the program's effectiveness in controlling premium costs.
Assembly Members Wallis and Flora propose a new tax credit for California homeowners facing rising residential property insurance costs, establishing a five-year program to offset premium increases above 2023 baseline rates. The credit would apply to tax years 2026 through 2031 for qualifying homeowners with adjusted gross incomes under $300,000 for joint filers or $150,000 for individual filers.
The credit amount equals the difference between current-year residential property insurance premiums and the taxpayer's 2023 base premium, plus any related assessments or surcharges. Eligible properties must be owner-occupied primary residences of four units or fewer, including condominiums and mobile homes, purchased before December 31, 2023. Commercial properties and premium financing charges do not qualify for the credit.
The Franchise Tax Board must report annually to the Legislature beginning July 2028 on credit usage and total value claimed. The program includes specific performance metrics tracking the number of participating taxpayers and comparing premium increases to California Consumer Price Index changes. The credit expires December 1, 2031, unless extended by future legislation.
 Sharon Quirk-SilvaD Assemblymember | Committee Member |  Not Contacted | |
 Mike GipsonD Assemblymember | Committee Member | Not Contacted | |
 Heath FloraR Assemblymember | Bill Author | Not Contacted | |
 Tina McKinnorD Assemblymember | Committee Member | Not Contacted | |
 Jasmeet BainsD Assemblymember | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-389 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2025 | Introduced | |
ABX-13 | Personal Income Tax: tax credits: fire-resistant home improvements. | January 2025 | Failed | |
AB-582 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2023 | Failed |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Establishes a new tax credit for California homeowners to offset rising residential property insurance costs.
- Provides credits for insurance premium increases above 2023 baseline costs through 2031.
- Limits eligibility to primary residences purchased before 2024 and households earning under $300,000 annually.
- Requires annual reporting starting July 2028 to track the program's effectiveness in controlling premium costs.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Members Wallis and Flora propose a new tax credit for California homeowners facing rising residential property insurance costs, establishing a five-year program to offset premium increases above 2023 baseline rates. The credit would apply to tax years 2026 through 2031 for qualifying homeowners with adjusted gross incomes under $300,000 for joint filers or $150,000 for individual filers.
The credit amount equals the difference between current-year residential property insurance premiums and the taxpayer's 2023 base premium, plus any related assessments or surcharges. Eligible properties must be owner-occupied primary residences of four units or fewer, including condominiums and mobile homes, purchased before December 31, 2023. Commercial properties and premium financing charges do not qualify for the credit.
The Franchise Tax Board must report annually to the Legislature beginning July 2028 on credit usage and total value claimed. The program includes specific performance metrics tracking the number of participating taxpayers and comparing premium increases to California Consumer Price Index changes. The credit expires December 1, 2031, unless extended by future legislation.
Sharon Quirk-SilvaD Assemblymember | Committee Member | Not Contacted | |
Mike GipsonD Assemblymember | Committee Member | Not Contacted | |
Heath FloraR Assemblymember | Bill Author | Not Contacted | |
Tina McKinnorD Assemblymember | Committee Member | Not Contacted | |
Jasmeet BainsD Assemblymember | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-389 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2025 | Introduced | |
ABX-13 | Personal Income Tax: tax credits: fire-resistant home improvements. | January 2025 | Failed | |
AB-582 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2023 | Failed |