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Bill

AB 2427

Personal Income Tax Law: Corporation Tax Law: tax credits: farming.

2025-2026 Regular Session Introduced by Juan Alanis and 11 co-sponsors

AB 2427 creates or expands California tax credits for farming operations, potentially reducing state revenue while affecting agricultural business costs and rural economies.

Re-referred to Com. on REV. & TAX.
#corporationtaxlaw #personalincometaxlaw #farming #taxcredits
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WeVote Research Nonpartisan
Bill Summary · AB 2427

Legislative bill overview

AB 2427 modifies California's personal income tax and corporation tax laws to create or expand tax credits related to farming operations. The bill was recently introduced and is currently in the early stages of the legislative process, with its first committee hearing tentatively scheduled for late March 2026.

Why is this important

Tax credits for farming can affect California's agricultural sector competitiveness, state revenue collection, and the financial burden on farming businesses. Given California's status as a major agricultural producer, any tax policy changes in this area have broad economic implications for rural communities and the state budget.

Potential points of contention

  • Revenue impact: The cost to the state budget from new or expanded farm tax credits is unclear without seeing the bill text, raising questions about fiscal sustainability
  • Fairness and scope: Determining which farming operations qualify and whether credits benefit large agribusiness versus small family farms could be contentious
  • Economic effectiveness: Whether tax credits are the most efficient way to support farming versus direct subsidies, infrastructure investment, or other policy tools

Compiled from official sources — confirm details with the bill’s official record.

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