Personal Income Tax Law: Corporation Tax Law: credits: retail security measures.

Senator Choi, joined by a bipartisan group of legislative colleagues, proposes new tax credits for California retailers who invest in theft prevention measures. The legislation creates parallel credits under both personal income and corporate tax codes, allowing qualified retailers to claim up to $10,000 annually for security-related expenditures between 2025 and 2030.

The tax credits apply to businesses primarily engaged in retail trade that make qualifying investments above baseline thresholds - $300 for retailers with 25 or fewer employees and $500 for larger operations. Eligible security measures include registered security officers, surveillance systems, perimeter lighting, physical security hardware, alarms, access controls, and license plate readers. The Franchise Tax Board must verify that claimed expenditures directly relate to retail theft prevention.

To monitor implementation, the legislation requires annual reports to the Legislature starting December 2026 detailing credit usage and total amounts claimed. The provisions contain a December 2030 sunset date, at which point the tax credits expire unless extended by future legislation. As a tax levy, the measure would take effect immediately upon enactment without requiring a budget appropriation.