Personal Income Tax Law: credits: insurance.
- Establishes a new tax credit for residential property insurance premium increases above 2023 baseline costs.
- Limits eligibility to homeowners earning under $300,000 jointly or $150,000 individually through 2030.
- Excludes properties valued over $3.3 million and those purchased after December 31, 2023.
- Requires annual reporting on credit usage and impact on insurance premium increases.
Assembly Members Wallis and Flora propose a new personal income tax credit for California homeowners facing increased residential property insurance costs, establishing a five-year program to offset premium increases above 2023 baseline rates.
The credit would apply to taxpayers with adjusted gross incomes under $300,000 for joint filers or $150,000 for individual filers, excluding those with residential properties valued above $3.3 million. Eligible properties must have been purchased before December 31, 2023, and include residential structures of up to four units, condominiums, or mobile homes used exclusively for residential purposes. The credit amount equals the difference between current premium payments and the taxpayer's 2023 base year premium, plus any related assessments or surcharges.
The Franchise Tax Board would oversee implementation from January 2025 through December 2029, with authority to establish guidelines and prevent improper claims. The program includes annual legislative reporting requirements on credit usage and premium cost trends relative to the California Consumer Price Index. The credit provision contains a December 2030 sunset clause and replaces any existing credits or deductions related to the qualifying premium payments.
 Sharon Quirk-SilvaD Assembly Member | Committee Member |  Not Contacted | |
 Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
 Heath FloraR Assembly Member | Bill Author | Not Contacted | |
 Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
 Jasmeet BainsD Assembly Member | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-389 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2025 | Introduced | |
ABX-13 | Personal Income Tax: tax credits: fire-resistant home improvements. | January 2025 | Failed | |
AB-582 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2023 | Failed |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Establishes a new tax credit for residential property insurance premium increases above 2023 baseline costs.
- Limits eligibility to homeowners earning under $300,000 jointly or $150,000 individually through 2030.
- Excludes properties valued over $3.3 million and those purchased after December 31, 2023.
- Requires annual reporting on credit usage and impact on insurance premium increases.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Members Wallis and Flora propose a new personal income tax credit for California homeowners facing increased residential property insurance costs, establishing a five-year program to offset premium increases above 2023 baseline rates.
The credit would apply to taxpayers with adjusted gross incomes under $300,000 for joint filers or $150,000 for individual filers, excluding those with residential properties valued above $3.3 million. Eligible properties must have been purchased before December 31, 2023, and include residential structures of up to four units, condominiums, or mobile homes used exclusively for residential purposes. The credit amount equals the difference between current premium payments and the taxpayer's 2023 base year premium, plus any related assessments or surcharges.
The Franchise Tax Board would oversee implementation from January 2025 through December 2029, with authority to establish guidelines and prevent improper claims. The program includes annual legislative reporting requirements on credit usage and premium cost trends relative to the California Consumer Price Index. The credit provision contains a December 2030 sunset clause and replaces any existing credits or deductions related to the qualifying premium payments.
Sharon Quirk-SilvaD Assembly Member | Committee Member | Not Contacted | |
Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
Heath FloraR Assembly Member | Bill Author | Not Contacted | |
Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
Jasmeet BainsD Assembly Member | Committee Member | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-389 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2025 | Introduced | |
ABX-13 | Personal Income Tax: tax credits: fire-resistant home improvements. | January 2025 | Failed | |
AB-582 | Personal Income Tax: tax credits: fire-resistant home improvements. | February 2023 | Failed |