Personal Income Tax Law: credits: insurance.

Assembly Members Wallis and Flora propose a new personal income tax credit for California homeowners facing increased residential property insurance costs, establishing a five-year program to offset premium increases above 2023 baseline rates.

The credit would apply to taxpayers with adjusted gross incomes under $300,000 for joint filers or $150,000 for individual filers, excluding those with residential properties valued above $3.3 million. Eligible properties must have been purchased before December 31, 2023, and include residential structures of up to four units, condominiums, or mobile homes used exclusively for residential purposes. The credit amount equals the difference between current premium payments and the taxpayer's 2023 base year premium, plus any related assessments or surcharges.

The Franchise Tax Board would oversee implementation from January 2025 through December 2029, with authority to establish guidelines and prevent improper claims. The program includes annual legislative reporting requirements on credit usage and premium cost trends relative to the California Consumer Price Index. The credit provision contains a December 2030 sunset clause and replaces any existing credits or deductions related to the qualifying premium payments.