Tax credit helps disaster victims get back sales tax

Income tax credit: sales and use tax paid: natural disasters.

Introduced· 2026-02-20

Who's it for

Who's it for: Everyday People

What it means for you

8/10Helps you

Good for everyday people ·

Plain‑English summary, cross‑checked against the official bill text.

If passed, Californians who rebuild after a disaster can claim a credit up to $4,000 for the sales tax they paid on new appliances and building supplies.

Our take

What we think, in plain words.

Homeowners hit by floods or fires could keep more of their money instead of paying extra tax, making it easier to replace broken things, but the state will lose revenue.

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The facts

What the bill actually says, no spin.

Bill creates a new income tax credit for sales and use tax paid on disaster repairs.
Credit applies for tax years 2027‑2031.
Credit limited to $4,000 per year per taxpayer.
Applies to purchases of major appliances, furniture, and building supplies used to rebuild a primary residence.
Credit can be claimed by the taxpayer or a nonprofit housing developer on their behalf.