CA AB1606

Creates a tax credit for businesses to offset costs of removing unauthorized encampments, illegal dumping, and abandoned property from commercial real property, capped at $20,000 for personal income tax filers.

Applies to taxable years beginning January 1, 2027, through January 1, 2032, with automatic repeal on December 1, 2032.

Qualified expenses include waste removal, sanitization, temporary security measures (fencing, gates), property repairs from encampment damage, and deterrent installations like riprap—excluding permanent improvements, ongoing maintenance, or employee compensation.

Requires cleanup costs to be paid within 60 days of discovery and taxpayers must certify under penalty of perjury that expenses resulted from unauthorized encampments not caused by the taxpayer.

Mandates the Franchise Tax Board to report annually to the Legislature starting July 1, 2029, on the number of taxpayers claiming the credit and total dollar value of credits allowed.