CA SB1266

Allows a 50% tax credit against personal income and corporation taxes for taxable years 2023-2027 for purchases of backup electricity generators or solar batteries in designated Tier 3 wildfire zones.

Limits credit to $3,500 per residence or commercial property per year for backup generators (minimum 10 kilowatts, air quality compliant) and $5,000 per year for solar batteries.

Defines qualified taxpayers as natural persons or small businesses with average annual gross receipts of $15 million or less over the previous three years.

Allows unused credits to be carried forward for up to six additional years if they exceed the taxpayer's net tax in a given year.

Requires Franchise Tax Board to annually report to the Legislature on the number of returns claiming the credit and total credits claimed through 2028; credit expires December 1, 2028.