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 Bill Text - AB-2427 Personal Income Tax Law: Corporation Tax Law: tax credits: farming. 

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 |Add To My Favorites |Track Bill | Version: 03/11/26 - Amended Assembly
 02/20/26 - Introduced

 AB-2427 Personal Income Tax Law: Corporation Tax Law: tax credits: farming. (2025-2026)

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 Date Published: 03/11/2026 09:00 PM

AB2427:v98#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 March 11, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 2427

Introduced by Assembly Member Tangipa
(Coauthors: Assembly Members Alanis, Castillo, Gallagher, Hadwick, and Macedo)
(Coauthors: Senators Alvarado-Gil, Choi, Dahle, Grove, Ochoa Bogh, and Valladares)

February 20, 2026

 An act to add and repeal Sections 17053.66 and 23668 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. 

LEGISLATIVE COUNSEL'S DIGEST

AB 2427, as amended, Tangipa.
 Personal Income Tax Law: Corporation Tax Law: tax credits: farming. 

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, 2027, and before January 1, 2032, would allow a credit against the taxes imposed by those laws for specified agricultural businesses that operate on at least 50 acres of land, as provided, equal to 25% of the business’s qualified expenditures, as defined. The bill would increase the credit by 5% to 30% of qualified expenditures if the taxpayer purchases specified low-emission equipment or the
 qualified taxpayer has qualified expenditures are related to the taxpayer’s related to operations in a high or very high fire hazard severity zone, as specified. The bill would limit the credit to no more than $1,000,000. The bill would cap the aggregate amount of the credit allowed at $250,000,000 for each taxable year, and would require a taxpayer to request a credit reservation from the Department of Food and Agriculture, as provided. The bill would require the Department of Food and Agriculture to coordinate with the Franchise Tax Board for the administration of the credit. The bill would require the Franchise Tax Board and the Department of Food and Agriculture to share
 specified information, and would make the unauthorized disclosure of that information a misdemeanor. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would also include additional information required for any bill authorizing a new tax expenditure.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that
 no reimbursement is required by this act for a specified reason.

This bill would take effect immediately as a tax levy.

Digest Key

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

Bill Text

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

SECTION 1.

 Section 17053.66 is added to the Revenue and Taxation Code, to read:

17053.66.

 (a) (1) For each taxable year taxable years beginning on or after January 1, 2027, and before January 1, 2032, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer equal to 25 percent of the total amount of the qualified taxpayer’s qualified expenditures during the taxable year, except as provided in paragraph (2). paragraphs (2) and (3).

(2) For any taxable year, the credit allowed under paragraph (1) shall be increased by an additional 5 to 30 percent of qualified expenditures if either of the following conditions are met:

(A) The qualified taxpayer purchases low-emission equipment, as defined in paragraph (1) of subdivision (b), during the taxable year.

(B) The qualified taxpayer has qualified expenditures are related to the qualified taxpayer’s
 related to operations in a high or very high fire hazard severity zone as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code.

(3) A credit allowed under thi