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Measure SB 269
Authors Choi  
Principle Coauthors: Seyarto  
Coauthors: Jones   Niello   Ochoa Bogh   Alanis   Jeff Gonzalez   Patterson  
Subject Personal income taxes: Fire Safe Home Tax Credits Act.
Relating To relating to taxation, to take effect immediately, tax levy.
Title An act to add and repeal Sections 17052.13 and 17052.14 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Last Action Dt 2025-05-07
State Amended Senate
Status In Committee Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency Yes
Tax Levy Yes
Leginfo Link Bill
Actions
2025-05-23     May 23 hearing: Held in committee and under submission.
2025-05-20     Set for hearing May 23.
2025-05-19     May 19 hearing: Placed on APPR. suspense file.
2025-05-15     Set for hearing May 19.
2025-05-14     From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1081.) (May 14). Re-referred to Com. on APPR.
2025-05-07     From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-04-09     From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-03-18     Set for hearing May 14.
2025-02-14     Referred to Com. on REV. & TAX.
2025-02-04     From printer. May be acted upon on or after March 6.
2025-02-03     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Amended Senate     2025-05-07
Amended Senate     2025-04-09
Introduced     2025-02-03
Last Version Text
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Choi</ns0:AuthorText>
		<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthor: Senator Seyarto)</ns0:AuthorText>
		<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Senators Jones, Niello, and Ochoa Bogh)</ns0:AuthorText>
		<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthors: Assembly Members Alanis, Jeff Gonzalez, and Patterson)</ns0:AuthorText>
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				<ns0:Name>Choi</ns0:Name>
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				<ns0:Name>Seyarto</ns0:Name>
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		<ns0:Title>An act to add and repeal Sections 17052.13 and 17052.14 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
		<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Personal income taxes: Fire Safe Home Tax Credits Act.</ns0:Subject>
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			<html:p>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.</html:p>
			<html:p>This bill would allow credits against the tax imposed by the Personal Income Tax Law for each taxable year beginning on or after January 1, 2026, and before January 1, 2031, 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.</html:p>
			<html:p>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.</html:p>
			<html:p> 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.</html:p>
			<html:p>This bill would take effect immediately as a tax levy.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>The credits allowed by Sections 17052.13 and 17052.14 of the Revenue and Taxation Code, as added by this act, shall be known and may be cited as the Fire Safe Home Tax Credits Act.</html:p>
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			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 17052.13 is added to the 
				<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
				, to read:
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					<ns0:Num>17052.13.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer who pays or incurs qualified costs for qualified home hardening on a qualified property, in an amount determined pursuant to paragraph (2).
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								Subject to the credit reservation requirements of subdivision (f), the credit amount shall be in an amount equal
						to:
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							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Fifty percent of qualified costs paid or incurred, not to exceed
						one thousand dollars ($1,000) of credit allowed, if the qualified property is located in a high fire hazard severity zone, per taxable year.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Fifty percent of qualified costs paid or incurred, not to exceed two thousand dollars ($2,000) of credit allowed, if the qualified property is located in a very high fire hazard severity zone, per taxable
						year.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								For purposes of this section:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“High fire hazard severity zone” means land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a high fire hazard severity zone.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Moderate fire hazard severity zone” means land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a moderate fire hazard severity zone.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								“Very high fire hazard severity zone” means either land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a very high fire hazard severity zone or an area designated by the State Fire Marshal pursuant
						to Section 51178 of the Government Code that is not a state responsibility area.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								“Qualified costs” means any expense paid or incurred by the qualified taxpayer during the taxable year in which the credit allowed by this section is claimed, documented by receipt, for qualified home hardening.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								“Qualified costs” do not include either of the following:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								Costs of any inspection or certification fees, in-kind contributions, donations, or incentives.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								Expenses paid or incurred by the qualified taxpayer from any grants awarded to the qualified taxpayer for
						qualified home hardening.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								“Qualified home hardening” means the replacement or repair of structural features that are affixed to the qualified property and performed or implemented for the primary purpose of reducing risk to structures from wildland fire.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								For purposes of this paragraph, “structural features” includes any of the following structural features that meet the requirements of Chapter 7A of the California Building Code: roofs, exterior walls, vents, eave assemblies, decks, fences, driveways, and chimneys.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								“Qualified property” means a dwelling or housing unit that is located in a moderate fire hazard severity zone, high fire hazard severity zone, or very
						high fire hazard severity zone for which a homeowners’ exemption pursuant to Section 218 has been granted to the qualified taxpayer in the taxable year for which the credit allowed by this section is claimed.
							</html:p>
							<html:p>
								(7)
								<html:span class="EnSpace"/>
								“Qualified taxpayer” means a taxpayer who satisfies both of the following requirements:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Has an adjusted gross income for the taxable year in which the credit allowed by this section does not exceed one hundred forty thousand dollars ($140,000) in the case of spouses filing a joint return, heads of households, and surviving spouses, as defined in Section 17046, or seventy thousand dollars ($70,000) for a single individual or a married individual filing separately.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Owns a qualified property.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								In the case where the credit allowed under this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding eight taxable years, if necessary, or until the credit has been exhausted.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								In the case of two taxpayers filing a joint return, only one credit may be claimed. In the case of two taxpayers who may file a joint return but file separate returns, only one of the taxpayers may claim the credit allowed by this section.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A qualified property shall only be eligible for one credit allowed by this section per taxable year.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								Taxpayers who share ownership in a qualified property but are ineligible to file a joint return shall not claim more than one credit on the same property.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								If the credit allowed by this section is claimed by the qualified taxpayer, any deduction or credit otherwise allowed under this part for any qualified expenditure made by the qualified taxpayer as a trade or business expense shall be reduced by the amount of the credit allowed by this section.
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								The total aggregate amount of the credit that may be allocated by credit reservations to all qualified taxpayers pursuant to this section and Section 17052.14 shall not exceed
						fifty million dollars
						($50,000,000) per taxable year plus the unused credit amount, if any, for the preceding taxable years.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								To be eligible for the credit allowed by this section and Section 17052.14, a qualified taxpayer shall request a credit reservation from the Franchise Tax Board during the month of July for each taxable year or within 30 days of the start of their taxable year if the qualified taxpayer’s taxable year begins after July, in the form and manner prescribed by the Franchise Tax Board.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								To obtain a credit reservation with respect to a qualified expenditure, the
						qualified taxpayer shall provide all necessary information, as determined by the Franchise Tax Board.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								The Franchise Tax Board shall approve tentative credit reservations with respect to qualified expenditures paid or incurred during a taxable year for qualified taxpayers, subject to the cap established under paragraph (1).
							</html:p>
							<html:p>
								(g)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to the Fire Safe Home Tax Credits Act, the Legislature finds and declares as follows:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								The specific goals, purposes, and objectives of the credits are as follows:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								To increase wildfire preparedness by providing a tax incentive to property owners that live in fire-prone parts of the state.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								To compensate taxpayers for costly mitigation measures that prepare their homes for wildfire season.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								To measure whether the Fire Safe Home Tax Credits meet these goals, purposes, and objectives, the Legislative Analyst’s Office shall prepare a
						written report on the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								The number of taxpayers claiming either or both of the credits.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								The average credit amount claimed on tax returns.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								Notwithstanding any other law, the Franchise Tax Board shall provide all information required to complete the report pursuant to paragraph (2) to the Legislative Analyst’s Office.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								The Legislative Analyst’s Office shall provide the written report required by paragraph (2) to the Senate Committee on
						Revenue and Taxation, the Assembly Committee on Revenue and Taxation, and the Assembly Committee on Local Government. A report submitted pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								
						This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
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			<ns0:Num>SEC. 3.</ns0:Num>
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				Section 17052.14 is added to the 
				<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
				, to read:
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					<ns0:Num>17052.14.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to 50 percent of qualified costs paid or incurred by the taxpayer, subject to the credit reservation requirements of subdivision (f) of Section 17052.13 and not to exceed five hundred dollars ($500) of credit allowed per taxable year,
						for qualified vegetation management on qualified property.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								For purposes of this section:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“High fire hazard severity zone” means land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a high fire hazard severity zone.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Moderate fire hazard severity zone” means land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a moderate fire hazard severity zone.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								“Very high fire hazard severity zone” means either land classified by the State Fire Marshal pursuant to Section 4202 of the Public Resources Code as within a
						very high fire hazard severity zone or an area designated by the State Fire Marshal pursuant to Section 51178 of the Government Code that is not a state responsibility area.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								“Qualified costs” means any
						expense paid or incurred by the qualified taxpayer during the taxable year in which the credit allowed by this section is claimed, documented by receipt, for qualified vegetation management.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								“Qualified costs” do not include either of the following:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								Costs of any inspection or certification fees, in-kind contributions, donations, or incentives.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								Expenses paid or incurred by the qualified taxpayer from any grants awarded to the qualified taxpayer for qualified vegetation management.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								For purposes of this paragraph, the following definitions apply:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								“Incentive” means a payment made by a third party to the qualified taxpayer under a cost-sharing or grant program.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								“In-kind contribution” means a nonmonetary resource provided to, or used by, a qualified taxpayer, including, but not limited to, personnel, equipment, facilities, and services, by a third party.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								“Qualified property” means a dwelling or housing unit that is located in a moderate fire hazard severity zone, high fire hazard severity zone, or very high fire hazard severity zone for which a homeowners’ exemption pursuant to Section 218 has been granted to the qualified taxpayer in the taxable year for which the credit allowed by this section is claimed.
							</html:p>
							<html:p>
								(6)
								<html:span class="EnSpace"/>
								“Qualified taxpayer” means a taxpayer who satisfies both of the following requirements:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Has an adjusted gross income for the taxable year in which the credit allowed by this section does not exceed one hundred forty thousand dollars ($140,000) in the case of spouses filing a joint return, heads of households, and surviving spouses, as defined in Section 17046, or seventy thousand dollars ($70,000) for a single individual or a married individual filing separately.
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								(B)
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								Owns a qualified property.
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								(7)
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								“Qualified vegetation management” means any of the following activities that meet the requirements of Section 4291 of the Public Resources Code performed by the qualified taxpayer for the primary purpose of
						reducing risk to structures from wildland fire:
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							<html:p>
								(A)
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								The creation of defensible space around structures.
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							<html:p>
								(B)
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								The establishment of fuel breaks.
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							<html:p>
								(C)
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								The thinning of woody vegetation.
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							<html:p>
								(D)
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								The secondary treatment of woody fuels by lopping and scattering, piling, chipping, removing from site, or prescribed burning.
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							<html:p>
								(c)
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								In the case where the credit allowed under this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding
						eight taxable years, if necessary, or until the credit has been exhausted.
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							<html:p>
								(d)
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								(1)
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								In the case of two taxpayers filing a joint return, only one credit may be claimed. In the case of two taxpayers who may file a joint return but file separate returns, only one of the taxpayers may claim the credit allowed by this section.
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							<html:p>
								(2)
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								A qualified property shall only be eligible for one credit allowed by this section per taxable year.
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								(3)
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								Taxpayers who share ownership in a qualified property but are ineligible to file a joint return shall not claim more than one credit on the same property.
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							<html:p>
								(e)
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								If the credit allowed by this section is claimed by the qualified taxpayer, any deduction or credit otherwise allowed under this part for any qualified expenditure made by the qualified taxpayer as a trade or business expense shall be reduced by the amount of the credit allowed by this section.
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							<html:p>
								(f)
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								This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
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				</ns0:LawSection>
			</ns0:Fragment>
		</ns0:BillSection>
		<ns0:BillSection id="id_D673C65D-89C6-4994-AD67-7215DCAEFD06">
			<ns0:Num>SEC. 4.</ns0:Num>
			<ns0:Content>
				<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
			</ns0:Content>
		</ns0:BillSection>
	</ns0:Bill>
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Last Version Text Digest 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 each taxable year beginning on or after January 1, 2026, and before January 1, 2031, 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.