Bill > AB976

This bill establishes the California Retail Security Tax Credit, which provides a tax credit for small businesses in disadvantaged communities to help them invest in retail theft prevention measures. Specifically, for taxable years 2026 and 2027, businesses with total gross annual receipts of $5 million or less and 25 or fewer employees can receive a tax credit of up to $4,000 for purchasing security equipment like cameras, locking systems, security lighting, access control systems, and alarm systems. To qualify, businesses must spend at least $4,000 on these security measures and be located in a community designated as disadvantaged by the state. The total amount of tax credits allocated per year is capped at $10 million, and businesses must request a credit reservation from the Franchise Tax Board. The bill aims to incentivize retail establishments to improve security and protect employees by deterring theft. The Franchise Tax Board will be required to report to the Legislature on the number of businesses claiming the credit, and the tax credit will expire on December 1, 2027.

Budget and Finance

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