CA AB2427

Creates a 25% tax credit for agricultural businesses operating on at least 50 acres for qualified expenditures including wages, infrastructure, equipment, and production costs, effective for taxable years January 1, 2027 through January 1, 2032.

Increases the credit to 30% if the taxpayer purchases low-emission equipment or has operations in a high or very high fire hazard severity zone.

Caps individual credits at $1,000,000 per taxpayer and limits total annual credits statewide to $250,000,000, with unused credits carrying forward for up to four years.

Requires taxpayers to request credit reservations from the Department of Food and Agriculture during July of each taxable year, with the department coordinating administration with the Franchise Tax Board.

Mandates annual reporting to the Legislature beginning April 1, 2029, on the number of taxpayers receiving credits and total dollar value; the program sunsets December 1, 2032.