AB 1435: Personal Income Tax Law: Corporation Tax Law: credits: cleanup costs.

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 various credits against the taxes imposed by those laws.

This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes to a qualified taxpayer, as defined, for qualified cleanup expenses. The bill would define qualified cleanup expenses for this purpose to mean costs directly related to the one-time removal and disposal of unauthorized encampments, illegal dumping, and abandoned property, as provided. The bill would require a taxpayer to certify, under penalty of perjury, that the costs reflected in documentation are directly related to qualified cleanup expenses. The bill would make related findings. By expanding the crime of perjury, this bill would impose a state-mandated local program.

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

This bill also would include additional information required for any bill authorizing a new tax expenditure.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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. June 5, 2025From committee: Without further action pursuant to Joint Rule 62(a).
2. May 5, 2025In committee: Set, final hearing. Held under submission.
3. April 29, 2025Re-referred to Com. on REV. & TAX.
4. April 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
5. April 21, 2025In committee: Set, second hearing. Referred to suspense file.
6. April 7, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
7. March 13, 2025Referred to Com. on REV. & TAX.
8. February 24, 2025Read first time.
9. February 22, 2025From printer. May be heard in committee March 24.
10. February 21, 2025Introduced. To print.