Bill > SB1343

This bill proposes to create a new income tax credit for Californians who have suffered damage to their primary residence from a natural disaster, defined as a state of emergency proclaimed by the Governor. For taxable years between 2027 and 2032, taxpayers can claim a credit equal to the amount of sales tax or use tax they paid on purchases of specific items needed to rebuild or replace damaged property, such as major appliances (like refrigerators or stoves costing up to $3,500 each), residential furniture (also up to $3,500 per item), and residential building supplies (like lumber or paint costing up to $500 per item). This credit can also be claimed if a nonprofit housing developer paid the tax on behalf of the taxpayer. The credit is available for three years following the natural disaster and has a maximum of $10,000 per disaster. If the credit exceeds the taxpayer's net tax liability (the total tax owed after other credits), the unused portion can be carried forward to future years. The bill also requires the Legislative Analyst's Office to review the effectiveness of these credits by 2029. This act is considered a tax levy and will take effect immediately.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1343