Bill > AB1606

This bill, effective immediately as a tax levy, introduces new tax credits for qualified taxpayers in California for the taxable years between January 1, 2027, and January 1, 2032, to help offset the costs associated with cleaning up unauthorized encampments, illegal dumping, and abandoned property on commercial real estate. A "qualified taxpayer" is defined as a business entity, including a sole proprietorship, that owns or leases commercial property affected by these issues. "Qualified cleanup expenses" are limited to costs directly related to the one-time removal and disposal of these problems, including waste removal, sanitization, temporary security measures like fencing, repairs to damage caused by encampments or dumping, and passive deterrents to prevent re-encampments, but specifically excluding ongoing maintenance, permanent security systems, new construction, capital improvements, and compensation for the taxpayer's own employees or contractors. For individuals, the credit is capped at $20,000 per taxable year. Taxpayers must provide documentation and certify under penalty of perjury that the expenses are directly related to these issues and meet all qualifications, and any deduction for these expenses will be reduced by the amount of the credit claimed. The bill also includes provisions for reporting on the credit's usage and repeals these tax credits on December 1, 2032.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1606