Bill > SB269

This bill establishes the Fire Safe Home Tax Credits Act, which creates two separate tax credits for homeowners in fire hazard zones to help improve wildfire preparedness. The first credit allows homeowners in high and very high fire hazard severity zones to claim 50% of their qualified home hardening expenses, with maximum credits ranging from $1,000 to $2,000 depending on the fire hazard zone, available for taxable years between 2026 and 2031. The second credit provides a 50% reimbursement (up to $500) for qualified vegetation management activities like creating defensible space, establishing fuel breaks, and thinning woody vegetation. To be eligible, taxpayers must have an adjusted gross income below $140,000 for joint filers or $70,000 for single/separate filers, and own a property in a specified fire hazard zone with a homeowners' exemption. The total aggregate credit amount is capped at $50 million per year, and taxpayers must request a credit reservation from the Franchise Tax Board in July or within 30 days of their taxable year's start. The bill also requires the Legislative Analyst's Office to prepare a report evaluating the credits' effectiveness in increasing wildfire preparedness and compensating taxpayers for mitigation measures. The tax credits are set to expire on December 1, 2031.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB269