Personal Income Tax Law: credits: insurance.

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.