CA AB2394

Excludes from California gross income any gains from the sale or exchange of real property by taxpayers aged 65 or older who have owned the property for at least 20 consecutive years

Applies to taxable years beginning on or after January 1, 2027, and before January 1, 2032 (five-year program)

Qualified property must be owned entirely by the taxpayer, or by the taxpayer and spouse for joint filers, for the full 20-year ownership period

Takes effect immediately as a tax levy upon enactment

Introduced by Assembly Member Lee on February 20, 2026