California 2025-2026 Regular Session

California Assembly Bill AB2016

Introduced
2/17/26  
Refer
3/2/26  
Report Pass
4/16/26  
Refer
4/20/26  

Caption

An act to amend Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. add Section 116365.7 to the Health and Safety Code, relating to water, and making an appropriation therefor.

Impact

In addition to tax provisions, AB 2016 also addresses public health by appropriating $69,425,000 from the General Fund for the removal of hexavalent chromium from drinking water. This funding will support the State Water Resources Control Board in making grants to various local water entities for infrastructure improvements and contaminant removal projects. This provides a direct benefit to communities affected by contaminated water, enhancing public health standards in compliance with the California Safe Drinking Water Act.

Summary

Assembly Bill 2016, introduced by Assembly Member Jeff Gonzalez, aims to amend California's Revenue and Taxation Code regarding personal income tax exclusions related to military retirement and survivor benefits. Specifically, the bill removes income limitations and the cap of $20,000 on eligible payments for retirement pay and annuities from the Department of Defense. The intent behind these changes is to provide greater financial relief to military families, especially those who have lost primary income sources due to the death of a service member.

Sentiment

The sentiment surrounding AB 2016 appears largely positive among supporters, particularly in the military community, who view the tax relief provisions as a necessary acknowledgment of the sacrifices made by service members and their families. However, funding for water safety and infrastructure still requires scrutiny and is often seen as contentious due to competing demands on state resources. Advocates for clean water emphasize the importance of addressing environmental health through adequate funding.

Contention

While AB 2016 presents significant provisions for military families and public health, there may be contention regarding how the appropriations for hexavalent chromium removal are allocated and the efficacy of such funding in producing real changes in water safety. There is also a conversation about how such tax changes will affect California's budget in the long term, particularly concerning state revenue and funding for other critical areas.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1219

An act to amend Section 17041 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

CA SB603

An act to amend Section 69 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

CA AB2192

Sales and use taxes: farm equipment and machinery.

CA SB1102

Personal Income Tax Law: credit: nurses.

CA SB1407

An act to amend Sections 17132.9 and 17132.10 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

CA SB881

An act to amend Sections 17053.88.5, 18855, and 23688.5 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor. therefor, and declaring the urgency thereof, to take effect immediately.

CA AB376

Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions.

CA SB1

Personal income taxes: exclusion: Military Services Retirement and Surviving Spouse Benefit Payment Act.

CA SB1113

Corporate tax: exclusions: qualifying shipping activities.

CA SB1053

An act to amend Sections 69 and 70.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

Similar Bills

No similar bills found.