California Fire Safe Home Tax Credits Act (SB 269)

Status

SB 269 is proposed legislation, not an active homeowner program. The bill text would create two income tax credits for taxable years beginning on or after 2026-01-01 and before 2031-01-01.

How it works

The bill would let a qualified taxpayer claim a credit against California personal income tax for:

• Qualified home hardening costs under proposed Section 17052.13, and
• Qualified vegetation management costs under proposed Section 17052.14.

Both credits would require a credit reservation from the Franchise Tax Board. The taxpayer would request a reservation during July for each taxable year, or within 30 days after the start of the taxable year if the taxpayer’s year begins after July.

What the money covers

For home hardening, the bill defines eligible work as the replacement or repair of structural features affixed to the property and performed to reduce wildfire risk. Covered structural features include:

• roofs
• exterior walls
• vents
• eave assemblies
• decks
• fences
• driveways
• chimneys

The work must meet Chapter 7A of the California Building Code.

For vegetation management, the bill covers activities that meet Section 4291 of the Public Resources Code and are done to reduce wildfire risk, including:

• defensible space around structures
• fuel breaks
• thinning woody vegetation
• secondary treatment of woody fuels by lopping and scattering, piling, chipping, removing from site, or prescribed burning

Amounts and matching

The credits would equal 50% of qualified costs paid or incurred, with these maximums:

• Home hardening: up to $2,500 per taxable year in a moderate fire hazard severity zone; up to $1,000 in a high fire hazard severity zone; up to $2,000 in a very high fire hazard severity zone
• Vegetation management: up to $500 per taxable year

The bill also says the total aggregate amount of credits allocated through reservations for Sections 17052.13 and 17052.14 cannot exceed $50,000,000 per taxable year, plus unused credit amounts from the prior year.

What does not count

Qualified costs do not include:

• inspection or certification fees
• in-kind contributions
• donations
• incentives
• expenses paid with grants awarded for the same qualified work

Timing and deadlines

The credits would apply only for taxable years beginning on or after 2026-01-01 and before 2031-01-01. The statute would repeal on 2031-12-01. If the credit is larger than the taxpayer’s net tax, unused credit can carry forward for the next taxable year and up to 8 additional taxable years.