Assembly BillFailedRevenue and Taxation
AB 1354: Personal Income Tax Law: credits: insurance.
What AB 1354 does, verified December 7, 2025
This bill allows a tax credit to qualified taxpayers for the amount paid during the taxable year for premium payments made for residential property insurance, minus the base year premium. The tax credit would be available for taxable years beginning on or after January 1, 2026, and before January 1, 2031. The tax credit would be equal to the difference between the total premium payments and the base year premium. The bill aims to achieve specific goals and objectives by including detailed performance indicators and data collection requirements.
Bill journey
✓IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: From committee: Without further action pursuant to Joint Rule 62(a). (2025-06-05)Alert me
Author and sponsors
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| Jun. 05, 2025 | From committee: Without further action pursuant to Joint Rule 62(a). |
| May. 05, 2025 | In committee: Set, final hearing. Held under submission. |
| Apr. 29, 2025 | Re-referred to Com. on REV. & TAX. |
| Apr. 28, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Apr. 21, 2025 | In committee: Set, second hearing. Referred to suspense file. |
Latest bill textAmended version, April 28, 2025 · 1,020 words
| Amended IN Assembly April 28, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 1354
| Introduced by Assembly Members Wallis and Flora |
February 21, 2025 |
An act to add and repeal Section 17053.84 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1354, as amended, Wallis. Personal Income Tax Law: credits: insurance.
The Personal Income Tax Law allows various credits against the tax imposed by that law.
This bill would, for taxable years beginning on or after January 1, 2025, 2026, and before January 1, 2030, 2031, allow a credit against that tax to a qualified taxpayer taxpayer, as defined, equal to the amount paid during the taxable year for premium payments made by the taxpayer for a policy of residential property insurance, as defined, minus the base year premium, defined as the premium paid by the taxpayer for a fire insurance policy in the 2023 calendar year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84.
(a) (1) For(2) The amount of the credit allowed by paragraph (1) shall be equal to the sum of the following:
(A) The amount of premium paid or incurred by a taxpayer for a policy of residential property insurance on a qualified residential property under Chapter 2 (commencing with Section 2030) of Part 1 of Division 2 of the Insurance Code in the taxable year minus the base year premium.
(B) Any assessment or surcharge paid or incurred by a taxpayer under Chapter 9 (commencing with Section 10090) of Part 1 of Division 2 of the Insurance Code.
(b) For purposes of this section, all of the following shall apply:
(1) “Base year premium” is the amount of premium paid or incurred by a taxpayer for a fire insurance policy under Chapter 2 (commencing with Section 2030) of Part 1 of Division 2 of the Insurance Code in the 2023 calendar year.
(2) (A) “Policy of residential property insurance” means a policy insuring individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes.
(B) “Policy of residential property insurance” shall not include insurance for real property, or the contents thereof, used for any commercial or industrial purpose.
(3) “Premium paid” paid or incurred” shall not include interest charges or other fees paid or incurred through a premium finance plan or other plan for extension of credit.
(4) “Qualified residential property” means an individually owned residential structures of not more than four dwelling units, individually owned condominium units, or individually owned mobilehomes, and their contents, located in this state and used exclusively for residential purposes as the taxpayer’s primary residence that was purchased prior to December 31, 2023.
(5) (A)“Qualified taxpayer” means a taxpayer an individual that satisfies either of the following:
(i)
(A)
In the case of spouses filing a joint return, heads of household, or a surviving spouse, adjusted gross income does not exceed three hundred thousand dollars ($300,000).(ii)
(B)
In the case of(B)“Qualified taxpayer” shall not include an individual with insured residential real property with an aggregate value greater than three million three hundred thousand dollars ($3,300,000).
(c) The credit allowed by this section shall be in lieu of any other credit or deduction that the qualified taxpayer may otherwise be allowed under this part with respect to amounts taken into account in calculating the credit allowed by this section.
(d) (1)The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(2)The Franchise Tax Board may prescribe any regulations necessary or appropriate to carry out the purposes of this section, including any regulations to prevent improper claims from being filed.
(e) (1) For purposes of complying with Section 41, the Legislature finds and declares as follows:
(A) The specific goal of the credit allowed by this section is to assist California taxpayers in affording the massive price increases for the cost of residential property insurance.
(B) The performance indicators for the Legislature to use in determining whether the credit achieves the goal described in subparagraph (A) are the number of taxpayers claiming the credit and whether the average year-over-year increase on insurance premiums is in line with increases in the California Consumer Price Index.
(2) (A) No later than December 1, 2026, July 1, 2028, and annually thereafter, the Franchise Tax Board shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of taxpayers claiming the credit in the most recent taxable year, and the total dollar value of credits allowed.
(B) The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.
(f) This section shall remain operative only until December 1, 2030, 2031, and as of that date is repealed.
Text of AB 1354 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions