CA AB1265

Extends California's tax credit for rehabilitation of certified historic structures for taxable years January 1, 2027 through January 1, 2031, providing a 20% credit on qualified rehabilitation expenditures.

Caps the maximum credit at $5,000,000 per taxpayer for the new program period (2027-2031), while removing the previous 25% enhanced credit tier and the credit for qualified residences.

Eliminates the annual $50 million aggregate allocation cap and the $10 million set-aside for qualified residences and smaller projects that existed in the prior program.

Requires the Legislative Analyst's Office to review credit effectiveness and submit reports to the Legislature by July 1, 2028 (for 2025-2027 credits) and July 1, 2032 (for 2027-2031 credits), measuring job creation, tax revenue increases, and federal/state/local contributions.

Takes effect immediately as a tax levy, with the California Tax Credit Allocation Committee and Office of Historic Preservation administering allocations on a first-come-first-served basis.