AB 976: Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit.

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, 2028, would allow a credit against the taxes imposed by those laws to a business operating in a disadvantaged community, as described, with total gross annual receipts of no greater than $5,000,000, with 25 or fewer employees in an amount equal to the taxpayer’s qualified retail theft prevention measure expenses at retail locations in the state, not to exceed $4,000 per taxable year, and subject to a credit reservation by the Franchise Tax Board, as specified. The bill would limit the total amount of tax credits allocated per taxable year to $10,000,000.

Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, 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.

This bill would take effect immediately as a tax levy.

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. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 5, 2025In committee: Set, second hearing. Held under submission.
4. April 29, 2025Re-referred to Com. on REV. & TAX.
5. April 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
6. March 24, 2025In committee: Set, first hearing. Referred to suspense file.
7. March 17, 2025Re-referred to Com. on REV. & TAX.
8. March 14, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
9. March 10, 2025Referred to Com. on REV. & TAX.
10. February 21, 2025From printer. May be heard in committee March 23.
11. February 20, 2025Read first time. To print.