CA AB2054

Exempts mutual ditch or irrigation companies that operate public water systems from California corporation taxes for taxable years beginning January 1, 2023 through December 31, 2027.

Requires exempt companies to certify compliance with open meeting and record accessibility requirements under the Corporations Code and Health and Safety Code, submitted under penalty of perjury with initial tax-exempt application and annual filings.

Authorizes the Franchise Tax Board to request additional information to verify certifications and to develop forms and schedules necessary to implement the certification requirement.

Requires the Franchise Tax Board to annually report (starting June 1, 2025) the number of corporations that applied for the exemption.

Mandates the California Association of Mutual Water Companies Joint Powers Risk and Insurance Management Authority to conduct outreach beginning July 1, 2027 regarding the potential repeal of the exemption.