Personal Income Tax: tax credits: fire-resistant home improvements.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a tax credit for California homeowners who make fire-resistant improvements to their primary residences. Qualified homeowners in high or very high fire hazard severity zones can receive up to $400 per year, or a total of $2,000 over five years, for expenses like fire-rated roofs, enclosed eaves, and noncombustible exterior walls. The credit is designed to help homeowners mitigate wildfire risks and protect their property and lives.
Key provisions
- Allows a 40% tax credit for qualified fire-resistant home improvements.
- Maximum credit of $400 per year or $2,000 cumulatively.
- Eligible improvements include fire-rated roofs, enclosed eaves, fire-resistant vents, and noncombustible exterior walls.
- Homeowners must reside in a high or very high fire hazard severity zone.
- Income limits apply to eligibility: $250,000 for joint filers/heads of household/surviving spouses, and $125,000 for other individuals.
- Carried-over credits can be used to reduce future ‘net tax’ liability.
- Requires the Franchise Tax Board to report on credit utilization and average claim amounts by December 1, 2030.
- The credit is set to expire on December 1, 2030.
Who is affected
- Homeowners
- California Residents
- Individuals in High or Very High Fire Hazard Severity Zones
- Taxpayers
Notable changes
Bill text
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