Bill > AB1435

This bill introduces a tax credit for businesses that incur expenses related to cleaning up unauthorized encampments, illegal dumping, and abandoned property on their commercial properties. For taxable years between January 1, 2026, and January 1, 2031, qualified taxpayers can claim a credit of up to $20,000 for one-time cleanup expenses, including waste removal, property sanitization, temporary security measures, and basic property repairs. The credit is available to business entities and sole proprietors who have been impacted by these issues, and taxpayers must provide documentation and certify under penalty of perjury that the expenses meet specific criteria. Qualified cleanup expenses are strictly defined to exclude ongoing maintenance, permanent improvements, employee compensation, and other unrelated costs. The bill was prompted by the Supreme Court's decision in City of Grants Pass v. Johnson, which has led to increased displacement of unhoused individuals and subsequent unauthorized encampments on private property. The Franchise Tax Board will be required to report annually on the number of taxpayers claiming the credit and the total dollar value of credits allowed, with the goal of supporting businesses and ensuring properties remain safe and accessible. The tax credit provisions will automatically expire on December 1, 2031.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1435