AB 1265: Income taxes: credits: rehabilitation of certified historic structures.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed by those laws, for taxable years beginning on or after January 1, 2021, and before January 1, 2027, for rehabilitation of certified historic structures, as defined, and, under the Personal Income Tax Law, for a qualified residence, as defined. Existing law allows an increased credit of 25% of the qualified rehabilitation expenditures with respect to a certified historic structure meeting any of certain criteria, including a rehabilitated structure that includes affordable housing for lower income households. Existing law requires a taxpayer to receive an allocation from the California Tax Credit Allocation Committee (CTCAC) to be eligible for the credit. Existing law limits the aggregate amount of money that can be allocated for these credits per calendar year.

Existing law requires, on an annual basis beginning January 1, 2021, until January 1, 2027, the Legislative Analyst to collaborate with the CTCAC and the State Office of Historic Preservation to review the effectiveness of these tax credits, as described.

This bill would require the Legislative Analyst to submit a review of the effectiveness of the tax credits for taxable years beginning on or after January 1, 2025, and before January 1, 2027, to the Legislature, as specified.

This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would enact a similar credit against the taxes imposed by the Personal Income Tax Law and the Corporation Tax Law for the rehabilitation of certified historic structures, as provided. The bill, for tax credits allocated for those taxable years, would remove the above-described increased credit of 25% and would remove the credit for a qualified residence. The bill would also remove the limit on the amount of money that can be allocated per calendar year, and would instead require the limit to be set by the Legislature in the annual Budget Act or another measure. The bill would provide additional requirements relating to the manner in which the credits are allocated.

Existing law requires any bill authorizing a new tax expenditure, as defined, to include exclusions from income, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.

This bill would include findings and reporting requirements in compliance with this requirement.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 27, 2026Chaptered by Secretary of State - Chapter 515, Statutes of 2026.
2. September 27, 2026Chaptered by Secretary of State - Chapter 515, Statutes of 2026.
3. September 27, 2026Approved by the Governor.
4. September 27, 2026Approved by the Governor.
5. August 31, 2026Enrolled and presented to the Governor at 4 p.m.
6. August 31, 2026Enrolled and presented to the Governor at 4 p.m.
7. August 25, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6449.).
8. August 25, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6449.).
9. August 20, 2026In Assembly. Concurrence in Senate amendments pending.
10. August 20, 2026In Assembly. Concurrence in Senate amendments pending.
11. August 20, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5588.).
12. August 20, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).