AB 1481 California Assembly · 2025-2026 Regular Session

Income tax: credit: immigration.

Summary

The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against the taxes imposed by that law to a qualified taxpayer, as defined, in a specified amount equal to the fee imposed to file a federal Petition for Alien Relative (I-130) form, not to exceed one credit per taxable year per qualified taxpayer, as specified. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action Feb 2, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/28/25 - Amended Assembly → AB1481 · 2 edits

MINOR

The changes between these two versions of AB 1481 are primarily technical and presentational. The bill text itself - which creates a state income tax credit equal to the I-130 Petition for Alien Relative filing fee ($675 paper, $625 online) for taxpayers with adjusted gross income at or below specified thresholds - appears substantively unchanged. The differences reflect a shift from a formatted legislative document layout to a web page rendering, including the addition of website navigation elements and UI components.

TECHNICAL

The document was reformatted from a traditional legislative bill layout with line numbers to a web page presentation, adding site navigation (home, accessibility, FAQ, search, login), a digest key section, and version tracking links.

Website interface elements were added including quick search fields, bill information links, PDF download options, vote/history/analysis tabs, and sharing functionality.

03/24/25 - Amended Assembly → 04/28/25 - Amended Assembly · 7 edits · Apr 28, 2025

MODERATE

The April 28 amendment to AB 1481 makes several significant changes: it removes a separate sales and use tax amendment (making the bill single-purpose), adds income eligibility limits for the immigration filing fee credit, fixes the credit amount at $675 (paper) or $625 (online) rather than tracking the actual fee, extends the sunset date by one year to 2031, and adds tax expenditure reporting requirements mandated by Section 41 of the Revenue and Taxation Code.

SCOPE

The entire amendment to Section 6006 of the Revenue and Taxation Code (a nonsubstantive change to the definition of 'sale' under the Sales and Use Tax Law) was removed, narrowing the bill to only the immigration tax credit.

ELIGIBILITY

Income limits were added: qualified taxpayers must have adjusted gross income of $250,000 or less (joint filers, heads of household, surviving spouses) or $120,000 or less (all other individuals). Previously any natural person qualified.

New joint return rules were added: only one credit may be claimed per taxable year when spouses file jointly, and if two taxpayers who could legally file jointly instead file separately, only one may claim the credit.

FISCAL

The credit amount was changed from a variable amount equal to the actual I-130 filing fee to fixed amounts: $675 for paper filings and $625 for online filings.

TIMELINE

The sunset date was extended from December 1, 2030 to December 1, 2031, and the applicable period was extended from 'before January 1, 2030' to 'before January 1, 2031.'

ENFORCEMENT

New Section 41 tax expenditure compliance provisions were added, including legislative findings stating the goal is to support legal immigration by offsetting I-130 filing costs, performance indicators (total dollar amount of credits and number of taxpayers), and a requirement for the Franchise Tax Board to submit a report to the Legislature by January 1, 2030.

TECHNICAL

Fiscal committee vote changed from 'no' to 'yes,' indicating the bill now has fiscal committee approval.

02/21/25 - Introduced → 03/24/25 - Amended Assembly · 7 edits · Mar 24, 2025

MODERATE

AB 1481 was substantially expanded from a minor technical sales tax amendment into a bill that also creates a new personal income tax credit equal to the federal I-130 (Petition for Alien Relative) filing fee. The credit is available to natural persons for taxable years beginning on or after January 1, 2025, and before January 1, 2030, with a one-credit-per-year limit and a seven-year carryover provision. The original nonsubstantive sales tax definition change was retained but demoted to Section 2.

Scope change

The bill expanded from a narrow technical amendment to the sales tax definition of 'sale' to also include a new personal income tax credit for immigration filing fees, making it a dual-purpose tax bill with both sales tax and income tax components.

FISCAL

New Section 17054.6 added to the Revenue and Taxation Code creating a personal income tax credit equal to the federal I-130 filing fee for qualified taxpayers (natural persons).

ELIGIBILITY

Defines 'qualified taxpayer' as a natural person, limits the credit to one per taxable year per taxpayer, and restricts it to taxable years beginning on or after January 1, 2025, and before January 1, 2030.

REQUIREMENT

Adds a carryover provision allowing unused credit to reduce net tax in the following year and up to seven succeeding years if necessary.

ENFORCEMENT

Requires qualified taxpayers to report information to the Franchise Tax Board upon request for administration of the credit.

TIMELINE

The new credit section becomes inoperative on December 1, 2030, making it a temporary provision with a five-year sunset.

SCOPE

The bill's scope expanded from solely amending the sales tax definition of 'sale' to also adding an income tax credit related to immigration filing fees. The fiscal committee vote changed from 'no' to 'yes' reflecting the new revenue impact.

TECHNICAL

Added a tax levy provision (SEC. 2) stating the act provides for a tax levy under Article IV of the California Constitution and takes immediate effect.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

May 5, 2025

Lower · Passed

In committee: Set, second hearing. Held under submission.

lower

Apr 29, 2025

Committee

Re-referred to Com. on REV. & TAX.

lower

Apr 28, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

lower

Apr 7, 2025

Committee

In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

lower

Mar 25, 2025

Committee

Re-referred to Com. on REV. & TAX.

lower

Mar 24, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

lower

Mar 24, 2025

Committee

Referred to Com. on REV. & TAX.

lower

Feb 22, 2025

Lower · Passed

From printer. May be heard in committee March 24.

lower

Feb 21, 2025

Introduced

Introduced. To print.

lower

1 primary · 1 co-sponsor