California: tax incentives, credits and advisors
California taxes personal income at the state level and does not follow several federal depreciation rules, so a federal deduction can look very different on the California return. Its property tax exclusion for newly installed active solar systems ends for new systems at the start of 2027.
Facts checked 2026-10-26 against the official sources linked below.
State incentives
Renewable energy items we cover in depth; the full catalog by category follows.
Active solar energy system new construction exclusion (property tax)
Revenue and Taxation Code §73 excludes a newly added active solar energy system from reassessment for property tax. Under Senate Bill 710 (2025) the exclusion becomes inoperative on January 1, 2027; a system previously excluded stays excluded until a later change in ownership. Assembly Bill 1516 (2025) adds a filing deadline for the initial purchaser of a building with a qualifying system, operative January 1, 2027.
Sources: California State Board of Equalization, Letter To Assessors No. 2026/034 (Sept. 1, 2026)
Below are the major California incentives we could verify against an official source, grouped by type. This is not an exhaustive list of every state program. Credits flagged Transferable can be sold or assigned to another taxpayer under state rules; see transferable state tax credits. Each row shows the date we last checked it.
California film and media incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Film and Television Tax Credit Program 4.0 | Credit | Film and TV productions approved and allocated a credit by the California Film Commission | Generally 35% of qualified expenditures (40% for a relocating TV series' first season); $750 million allocated per fiscal year; independent films count only the first $20 million | Transferable: Yes, for independent films only (buyers cannot elect a refund) | Yes, by one-time election: 90% of credit above tax, paid over 5 years | Active; sunsets June 30, 2030 | California Film Commission, The Basics 4.0; FTB, 2025 Instructions for Form FTB 3541 Last verified 2026-10-26 |
| Soundstage filming tax credit | Credit | Productions filmed at certified California soundstages (FTB 3541, code 245) | Not stated | No; only assignable to affiliated corporations (R&TC §23698(c)(1)) or under R&TC 23663 | Not stated | Active (current credit) | FTB, 2025 Schedule P (100) credit table; FTB, 2025 Form 3541 instructions Last verified 2026-10-27 |
California historic and building rehabilitation incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| State historic rehabilitation tax credit | Credit | Owners of qualified historic structures (FTB 3835, code 243) | Not stated | Not stated | Not stated | Active (current credit) | FTB, 2025 Schedule P (100) credit table Last verified 2026-10-26 |
California jobs, investment and enterprise zones incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| California Competes Tax Credit | Credit | Businesses that negotiate a 5-year agreement with GO-Biz to meet employment, salary and investment milestones | Negotiated per agreement; earned yearly as milestones are met | No; may only be assigned to members of the same combined reporting group (R&TC 23663) | No; can reduce tax below tentative minimum tax; 6-year carryover | Active | FTB, California Competes Tax Credit; FTB, Credit assignments Last verified 2026-10-27 |
| College Access Tax Credit | Credit | Taxpayers contributing to the College Access Tax Credit Fund (FTB 3592, code 235) | Not stated | Not stated | Not stated | Active (current credit) | FTB, 2025 Schedule P (100) credit table Last verified 2026-10-26 |
| Homeless hiring tax credit | Credit | Employers hiring certified individuals experiencing homelessness (FTB 3831, code 244) | $2,500 to $10,000 per eligible employee based on hours worked; up to $30,000 per taxable year; $30 million a year statewide; 3-year carryover | Not stated | Not stated | Available for taxable years 2022 through 2026 | FTB, 2025 Schedule P (100) credit table; FTB, Homeless hiring tax credit Last verified 2026-10-27 |
California research and development incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Research credit | Credit | Taxpayers with qualified research expenses for research conducted in California | 15% of QREs over the base amount; corporations also get 24% of basic research payments; from 2025 an alternative simplified credit of 3% may be elected | Not stated | No | Active | FTB, 2025 Instructions for Form FTB 3523 Last verified 2026-10-26 |
California housing incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Low-income housing tax credit (state) | Credit | Owners of qualified low-income housing projects allocated credits by the California Tax Credit Allocation Committee | Allocated by CTCAC; for credits allocated after 2016, may be sold to unrelated parties for at least 80% of the credit amount | Transferable: Yes, can be sold if elected through CTCAC | No | Active | FTB, 2025 Instructions for Form FTB 3521 Last verified 2026-10-26 |
California charitable giving incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Natural heritage preservation credit | Credit | Donors of qualified land or water rights for conservation (FTB 3503, code 213) | 55% of the fair market value of qualified property donated to the state, a local government or a designated nonprofit | Not stated | Not stated | Active (current credit) | FTB, 2025 Schedule P (100) credit table; FTB, 2025 Form 100 booklet Last verified 2026-10-27 |
California renewable energy incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Active solar energy system new construction exclusion | Exclusion (property tax) | Owners who add an active solar energy system to property | Newly added system excluded from reassessment | No | No | Ends for new systems on January 1, 2027; existing exclusions stay until a change in ownership | California State Board of Equalization, Letter To Assessors No. 2026/034 Last verified 2026-10-26 |
State income tax notes
- California does not conform to federal bonus depreciation (IRC §168(k)). Federal bonus depreciation taken on solar equipment or on cost segregation components generally has to be adjusted on the California return. (Source: California FTB, 2025 Instructions for Form FTB 3885)
Advisors located in California
- Allworth Financial Folsom, CA
- Hone Maxwell LLP San Diego, CA
- Restrepo Wealth Folsom, CA
Listed alphabetically by the location on each advisor's public listing; not a recommendation. Many firms also serve clients in other states.
Sponsors headquartered in California
- Trinary Capital, LLC Anaheim, CA
Each sponsor page shows its evidence score and any public-record flags.
Related strategies
- Solar Investment Credits IRS scrutiny: Yellow/Orange
- Accelerated Depreciation IRS scrutiny: Yellow
- Donor-Advised Funds IRS scrutiny: Green
- Cash Balance Plans IRS scrutiny: Green
Related guides
- Bonus depreciation and solar in 2026: 100% expensing, the basis haircut, and the passive loss limits
- The solar investment tax credit in 2026: what current law says after the 2025 tax act
- How to reduce taxes on W-2 income in 2026: what works, what usually does not
- How to find and vet a tax mitigation advisor: credentials, questions and red flags
- How state tax credit transfers work: minimum prices, notices, buyer limits and state examples
- Pass-through entity tax and the SALT cap in 2026: what changed and what did not
- How states tax capital gains and passive income in 2026: California, Washington, Massachusetts, Texas and more
Common questions
Does California follow federal bonus depreciation?
No. California does not conform to IRC §168(k), so federal bonus depreciation generally has to be adjusted on the California return.
Is new rooftop solar still excluded from California property tax reassessment?
The §73 new construction exclusion becomes inoperative on January 1, 2027. Systems already excluded remain excluded until a later change in ownership.
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