Tax Incentives & Credit Programs

Establishes a new monitoring system to track the economic impact of California film tax credit recipients. Requires film productions to submit detailed employee demographic and geographic data starting January 2026. Mandates biennial economic impact analyses of film tax credits by California research institutions. Imposes monetary penalties on productions that fail to report or falsify compliance data.

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.

Eliminates the 'good faith effort' standard for film tax credits, requiring production companies to meet diversity goals. Maintains the existing $330 million annual tax credit cap for qualified film and TV productions through 2029-30. Requires productions to submit and achieve diversity workplan goals to receive an additional 4% tax credit. Establishes a Career Pathways Training program funded by 0.5% of approved tax credits to train underserved communities.

Extends historic building rehabilitation tax credits through 2031 to promote preservation and affordable housing. Increases the tax credit from 25% to 30% for projects that preserve affordable housing or convert buildings to housing. Allocates $50 million annually in tax credits with $10 million reserved for smaller projects and affordable housing. Requires detailed economic impact reporting including job creation and tax revenue projections for approval.

Modifies state payment deadlines based on fire protection staffing needs rather than fixed fire seasons. Allows suspension of late payment penalties during major disasters or calamities. Maintains payment deadline protections for small businesses and nonprofits during emergency periods. Requires penalties to continue accruing when payments are delayed due to lack of state budget.

Exempts direct transfers from 529 college savings plans to Roth IRAs from state income tax during 2025-2029. Aligns California tax law with federal changes to simplify tax preparation for state residents. Takes effect immediately to allow taxpayers to benefit from the new tax exemption starting in 2025.

Increases California's film and television tax credit program from $330 million to $750 million annually starting in 2025. Raises the tax credit from 20-25% to 35-40% of qualified production expenses for eligible film and TV projects. Expands eligibility to include animated series, animated films, and large-scale competition shows. Requires productions to meet diversity goals and contribute funding for industry job training programs.

Establishes new tax deductions for contributions to California's college savings plans starting January 2026. Allows deductions up to $10,000 for joint filers and $5,000 for individual filers with qualifying income limits. Requires taxpayers to repay deductions if withdrawals exceed qualified education expenses. Mandates annual reporting on program effectiveness and new account creation starting July 2027.

Establishes new tax deductions for contributions to CalABLE accounts for disabled individuals from 2026 through 2030. Requires the Franchise Tax Board to evaluate and report on the program's effectiveness by January 2031. Automatically expires on December 1, 2031 unless renewed by the Legislature.

Establishes a tax credit of up to $4,000 for small retailers in disadvantaged communities to install security equipment. Limits eligibility to businesses with annual receipts under $5 million and 25 or fewer employees. Allocates $10 million annually in total tax credits between January 2026 and December 2027. Requires businesses to obtain credit reservation approval from the Franchise Tax Board before claiming the credit.

Increases California's film and TV tax credit program from $330 million to $750 million annually starting in 2025. Raises tax credit rates from 20-25% to 35-40% of qualified production expenses for eligible projects. Expands eligibility to include animated series, animated films, and large-scale competition shows. Requires productions to submit diversity plans and meet workforce goals to receive full tax credit benefits.

Exempts pension payments for California peace officers and survivor benefits from state income tax from 2025 to 2030. Aims to retain retired law enforcement personnel in California by providing tax relief on retirement income. Requires a comprehensive effectiveness report from the Legislative Analyst's Office by December 2030. Applies to both active retiree pensions and survivor benefits for families of fallen officers.

Modifies how taxpayers can sell low-income housing tax credits by requiring CTCAC approval and oversight. Requires tax credit sales to be at least 80% of the credit value to protect program integrity. Maintains original taxpayer liability for credits even after sale to ensure program accountability. Enhances CTCAC's authority to review and certify tax credit transactions and allocations.

Establishes state funding for meals served to guardians at summer meal program sites starting in 2026. Requires guardians to be physically present at meal sites to receive reimbursed meals. Prioritizes meal funding for guardians under age 22 and those in high-poverty areas if funds are limited. Mandates meal operators to report guardian meal counts within 30 days of summer program completion.

Exempts up to $20,000 in military retirement pay from state income tax for qualifying veterans through 2035. Provides a $20,000 tax exemption for military survivor benefit payments to qualifying spouses and dependents. Limits benefits to individuals earning under $125,000 or joint filers earning under $250,000 annually. Takes effect January 2025 to support veteran retention and provide relief for military families in California.

Exempts up to $20,000 in military retirement pay from state income tax for qualifying veterans from 2025 to 2030. Provides surviving military spouses a $20,000 tax exemption on survivor benefit payments through 2030. Limits eligibility to individuals earning under $125,000 or joint filers under $250,000 annually. Includes retirement benefits from Public Health Service and NOAA Commissioned Corps members.