SB 1084 California Senate · 2025-2026 Regular Session

Personal income taxes: Fire Safe Home Tax Credits Act.

Summary

The Personal Income Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit 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 allow credits against the tax imposed by the Personal Income Tax Law for taxable years beginning on or after January 1, 2027, and before January 1, 2032, to a qualified taxpayer for qualified costs relating to qualified home hardening, as defined, and for qualified costs relating to qualified vegetation management, as defined, in specified amounts, not to exceed an aggregate amount of $50,000,000 per taxable year. This bill would require a qualified taxpayer to reserve a credit for qualified costs relating to qualified home hardening or qualified vegetation management to be eligible for the above-described credits and provide all necessary information for this purpose, as specified. This bill also would include additional information required for any bill authorizing a new income tax credit and would require the Legislative Analyst's Office to prepare a written report regarding the credits, as provided. This bill would take effect immediately as a tax levy.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 13, 2026 Last action May 14, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

04/23/26 - Amended Senate → SB1084 · 3 edits

MINOR

The amended Senate version of SB 1084 (Fire Safe Home Tax Credits Act) significantly reduces the maximum annual tax credit amounts for wildfire preparedness expenses. The home hardening credit caps are cut from $5,000 to $1,000 in high fire hazard zones and from $10,000 to $2,000 in very high fire hazard zones, while the vegetation management credit cap is cut from $2,500 to $500. All other provisions including income eligibility thresholds, the $50 million annual aggregate cap, the 2027-2032 program period, and carryover rules remain unchanged.

FISCAL

Maximum annual credit for home hardening in a high fire hazard severity zone reduced from $5,000 to $1,000 (an 80% reduction).

Maximum annual credit for home hardening in a very high fire hazard severity zone reduced from $10,000 to $2,000 (an 80% reduction).

Maximum annual credit for qualified vegetation management reduced from $2,500 to $500 (an 80% reduction).

02/13/26 - Introduced → 04/23/26 - Amended Senate · 7 edits · Apr 23, 2026

MODERATE

The Senate amendment dramatically reduces the maximum credit amounts available under the Fire Safe Home Tax Credits Act: home hardening credits drop from $5,000/$10,000 to $1,000/$2,000 depending on fire hazard zone, and the vegetation management credit drops from $2,500 to $500 per taxable year. The amendment also narrows eligible costs to 'unreimbursed' expenses only, clarifies exclusions for third-party payments, and broadens who may perform qualified vegetation management beyond just the taxpayer.

Scope change

The overall scope and applicability of the bill remains the same (same income limits, same fire hazard zones, same time period of 2027-2031, same $50 million annual cap), but the practical reach is significantly narrowed due to the 80 percent reduction in per-taxpayer credit amounts and the new unreimbursed cost requirement.

FISCAL

Maximum home hardening credit reduced from $5,000 per year (high fire hazard severity zone) to $1,000 per year, an 80 percent reduction.

Maximum home hardening credit reduced from $10,000 per year (very high fire hazard severity zone) to $2,000 per year, an 80 percent reduction.

Maximum vegetation management credit reduced from $2,500 per year to $500 per year, an 80 percent reduction.

ELIGIBILITY

Qualified costs now must be 'unreimbursed' expenses, meaning costs that have already been paid back by another source no longer qualify for the credit.

DEFINITION

Exclusions from qualified costs restructured: inspection and certification fees are now a separate exclusion from in-kind contributions, donations, and incentives, making the rules clearer about what is excluded.

SCOPE

Qualified vegetation management is no longer limited to work 'performed by the qualified taxpayer' but now includes work 'performed by the qualified taxpayer or implemented' for fire risk reduction, allowing third parties to carry out the work on the taxpayer's behalf.

TECHNICAL

Building code reference made more specific: changed from 'Chapter 7A of the California Building Code' to '(commencing with Section 701A.1) of Part 2 of Title 24 of the California Code of Regulations, or its successor code.'

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Upper · Passed

May 14 hearing: Held in committee and under submission.

upper

May 6, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 4154.) (May 6). Re-referred to Com. on APPR.

upper

Apr 23, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

upper

Feb 26, 2026

Committee

Referred to Com. on REV. & TAX.

upper

Feb 13, 2026

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 12 co-sponsors