AB-1435
Budget & Economy

Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.

Failed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes a tax credit of up to $20,000 for businesses to cover unauthorized encampment cleanup costs.
  • Requires businesses to document and claim cleanup expenses within 60 days of discovering unauthorized encampments.
  • Covers specific cleanup costs including waste removal, temporary security measures, and property repairs.
  • Expires in December 2031 unless extended by the Legislature.

Summary

Assembly Member Nguyen's tax credit proposal responds to increased unauthorized encampments on private property following recent Supreme Court decisions on camping ordinances. The legislation would allow commercial property owners and lessees to claim credits of up to $20,000 for expenses related to removing encampments, illegal dumping, and abandoned property between 2026 and 2031.

The bill defines eligible cleanup costs as those incurred within 60 days of discovery, including waste removal, property sanitization, temporary security measures, damage repairs, and installation of passive deterrents. Permanent improvements, ongoing maintenance, security systems, and employee compensation would not qualify. Taxpayers must document property conditions before cleanup and provide detailed contractor invoices to claim the credit.

To prevent duplicate claims, only the entity that directly paid for cleanup services may receive the credit. The Franchise Tax Board would implement the program through emergency regulations and report annually to the Legislature on credit usage starting in 2029. The bill requires taxpayers to certify under penalty of perjury that expenses meet all qualifications and resulted from unauthorized activities not caused by the claiming entity.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Stephanie NguyenD
Assemblymember
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Profile
Stephanie NguyenD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Stephanie Nguyen
Stephanie NguyenD
California State Assembly Member
100% progression
Bill did not receive enough votes to pass or was withdrawn (6/5/2025)

Key Takeaways

  • Establishes a tax credit of up to $20,000 for businesses to cover unauthorized encampment cleanup costs.
  • Requires businesses to document and claim cleanup expenses within 60 days of discovering unauthorized encampments.
  • Covers specific cleanup costs including waste removal, temporary security measures, and property repairs.
  • Expires in December 2031 unless extended by the Legislature.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Stephanie Nguyen
Stephanie NguyenD
California State Assembly Member

Summary

Assembly Member Nguyen's tax credit proposal responds to increased unauthorized encampments on private property following recent Supreme Court decisions on camping ordinances. The legislation would allow commercial property owners and lessees to claim credits of up to $20,000 for expenses related to removing encampments, illegal dumping, and abandoned property between 2026 and 2031.

The bill defines eligible cleanup costs as those incurred within 60 days of discovery, including waste removal, property sanitization, temporary security measures, damage repairs, and installation of passive deterrents. Permanent improvements, ongoing maintenance, security systems, and employee compensation would not qualify. Taxpayers must document property conditions before cleanup and provide detailed contractor invoices to claim the credit.

To prevent duplicate claims, only the entity that directly paid for cleanup services may receive the credit. The Franchise Tax Board would implement the program through emergency regulations and report annually to the Legislature on credit usage starting in 2029. The bill requires taxpayers to certify under penalty of perjury that expenses meet all qualifications and resulted from unauthorized activities not caused by the claiming entity.

100% progression
Bill did not receive enough votes to pass or was withdrawn (6/5/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Stephanie NguyenD
Assemblymember
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Profile
Stephanie NguyenD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member