17053.4.

 (a) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to 40 percent of the taxpayer’s qualified expenses, subject to subdivision (c).

(b) For purposes of this section, the following definitions apply:

(1) “Qualified expenses” means costs paid or incurred by a qualified taxpayer associated with the building or installation of hardening measures to the taxpayer’s primary residence, including, but not limited to, the following:

(A) A Class A fire rated roof.

(B) Enclosed eaves.

(C) Fire-resistant vents.

(D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.

(2) “Qualified taxpayer” means an individual whose primary residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:

(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.

(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.

(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year.

(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding three years if necessary, until the credit is exhausted.

(e) (1) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:

(A) The specific goal that the credit allowed by subdivision (a) will achieve is to compensate homeowners who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.

(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.

(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2030, to the Legislature, in compliance with Section 9795 of the Government Code.

(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.

(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.