Senate BillFailedRevenue and Taxation
SB 665: Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.
What SB 665 does, verified February 3, 2026
This bill allows a tax credit to qualified taxpayers for retail theft prevention measures. The credit is limited to $10,000 per taxable year for taxable years beginning on or after January 1, 2025, and before January 1, 2030. The tax credit is designed to achieve specific goals and objectives, including detailed performance indicators and data collection requirements. The bill takes effect immediately as a tax levy.
Bill journey
✓IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: Returned to Secretary of Senate pursuant to Joint Rule 56. (2026-02-02)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions8 total · showing 5
| Feb. 02, 2026 | Returned to Secretary of Senate pursuant to Joint Rule 56. |
| May. 14, 2025 | May 14 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 1083.) Reconsideration granted. |
| May. 14, 2025 | May 14 set for first hearing. Failed passage in committee. (Ayes 1. Noes 4. Page 1083.) Reconsideration granted. |
| May. 07, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX. |
| Mar. 18, 2025 | Set for hearing May 14. |
Latest bill textAmended version, May 7, 2025 · 570 words
| Amended IN Senate May 07, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 665
| Introduced by Senator Choi (Coauthors: Senators Alvarado-Gil and Ochoa Bogh) (Coauthors: Assembly Members Alanis and Wallis) |
February 20, 2025 |
An act to add and repeal Sections 17053.89 and 23683 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 665, as amended, Choi. Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would allow a credit against those taxes to a qualified taxpayer, as defined, for retail theft prevention measures, as specified. The bill would limit the credit allowed to a taxpayer to no more than $10,000 per taxable 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 17053.89 is added to the Revenue and Taxation Code, to read:17053.89.
(a) For taxable years beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed as a credit against the “net tax,” as that term is defined in Section 17039, an amount equal to the qualified expenditures of a qualified taxpayer during the taxable year, not to exceed ten thousand dollars ($10,000).(b) For purposes of this section, the following definitions shall apply:
(1) “Annual full-time equivalent employee” mean either of the following:
(A) In the case of a full-time employee paid hourly wages, “annual full-time equivalent” means the total number of hours worked for the qualified taxpayer by the employee, not to exceed 2,000 hours per employee, divided by 2,000.
(B) In the case of a salaried full-time employee, “annual full-time equivalent” means the total number of weeks worked for the qualified taxpayer by the employee divided by 52.
(1)
(2)
“Qualified expenditure” shall mean an expense paid or incurred by the qualified taxpayer that is directly related to retail theft prevention measures that exceed the following:(A) In the case of a qualified taxpayer with 25 or fewer annual full-time equivalent employees, three hundred dollars ($300) at a retail location in the state.
(B) In the case of a qualified taxpayer with more than 25 annual full-time equivalent employees, five hundred dollars ($500) at a retail location in the state.
(2)
(3)
“Qualified taxpayer” shall mean a taxpayer that is primarily engaged in a retail trade, as described in Codes 441 to 459999, inclusive, of the North American Industry Classification System published by the United States Office of Management and Budget, 2022 edition.(3)
(4)
“Retail theft prevention measures” shall include, but not be limited to, the following:(A)Security officers registered under the Private Security Services Act (Chapter 11.5 (commencing with Section 7580) of Division 3 of the Business and Professions Code).
(B)
(A)
Security cameras.(C)
(B)
Perimeter security lighting.(D)
(C)
Locking or hardening mechanisms.Text of SB 665 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions