CA AB2359

Creates a tax credit of 50% of costs (up to $5,000 per taxable year) for purchasing battery storage system units paired with solar energy systems on owned California property for taxable years 2021-2025.

Applies to both personal income tax (Section 17053.35) and corporation tax (Section 23652), with identical credit terms and limitations.

Limits credit to one battery storage system unit per separate legal parcel of property where the taxpayer has legal ownership, administered on first-come-first-served basis by the Franchise Tax Board based on return receipt date.

Excludes taxpayers engaged in construction, mining, or oil and gas extraction (NAICS Sector 22) from claiming the credit.

Requires Legislative Analyst's Office to report on credit effectiveness by December 1, 2023 and December 1, 2025, measuring success by number of claimants and total credits provided; both tax code sections expire December 1, 2026.