California AB 976: Artificial Intelligence in State Government Services Commission.

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 Bill Text - AB-976 Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit.

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 |Add To My Favorites |Track Bill | Version: 04/28/25 - Amended Assembly
 03/14/25 - Amended Assembly
 02/20/25 - Introduced

 AB-976 Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit.(2025-2026)

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 Date Published: 04/28/2025 02:00 PM

AB976:v97#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 April 28, 2025

 Amended
 IN 
 Assembly
 March 14, 2025

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 976

Introduced by Assembly Member Ávila Farías

February 20, 2025

An act to add and repeal Sections 17053.77 and 23621.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. 

LEGISLATIVE COUNSEL'S DIGEST

AB 976, as amended, Ávila Farías.
 Personal Income Tax Law: Corporation Tax Law: California Retail Security Tax Credit.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. 

This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2028, would allow a credit against the taxes imposed by those laws to a business operating in a disadvantaged community, as described, with total gross annual receipts of no greater than $5,000,000, with 25 or fewer employees in an amount equal to the taxpayer’s qualified retail theft prevention measure expenses at retail locations in the state, not to exceed $4,000 per taxable year, and subject to a credit reservation by the California Tax
 Credit Allocation Committee, Franchise Tax Board, as specified. The bill would limit the total amount of tax credits allocated per taxable year to $10,000,000.

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 findings and reporting requirements in compliance with this requirement.

This bill would take effect immediately as a tax levy.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The credits allowed by Sections 17053.77 and 23621.5 of the Revenue and Taxation Code, as added by this act, shall be known, and may be cited, as the California Retail Security Tax Credit. 

SEC. 2.

 Section 17053.77 is added to the Revenue and Taxation Code, to read:

17053.77.

 (a) (1) For each taxable year beginning on or after January 1, 2026, and before January 1, 2028, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to the taxpayer’s qualified retail theft prevention measure expenses during the taxable year, subject to paragraph (2), that receives a tentative credit reservation pursuant to this section.

(2) The credit allowed by this section shall be equal to the amount received as a credit reservation pursuant to subdivision (c), not to exceed four thousand dollars ($4,000) per taxable year.

(b) For purposes of this section:

(1) “Full-time equivalent employee” shall be calculated as follows:

(A) An employee of a qualified taxpayer who works a minimum of 36 hours per week for each week the employee is employed by the qualified taxpayer, at the qualified taxpayer’s retail location in the state, shall equal one full-time equivalent employee.

(B) An employee of the qualified taxpayer who works a minimum of 20 hours per week, but less than 36 hours per week, for each week the employee is employed by the qualified taxpayer, at the qualified taxpayer’s retail location in the state, shall equal one-half full-time equivalent employee.

(C) A
 salaried employee of the qualified taxpayer who was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified taxpayer, at the qualified taxpayer’s retail location in the state, shall equal one full-time equivalent employee.

(2) “Qualified retail theft prevention measure expenses” means the purchase, that is incurred on or after the operative date of this section, in an amount of at least four thousand dollars ($4,000),