AB1698 - Personal Income Tax Law: Corporation Tax Law: credits: food handler card.

Amended IN Assembly March 09, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1698 Introduced by Assembly Member Alanis February 03, 2026 An act to add and repeal Sections 17053.65 and 23665 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 1698, as amended, Alanis. Personal Income Tax Law: Corporation Tax Law: credits: food handler card. The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2029, would allow a credit for expenses paid or incurred by a qualified taxpayer for an employee obtaining a food handler card, as specified. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 17053.65 is added to the Revenue and Taxation Code, to read: 17053.65. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2029, there shall be allowed against the “net tax,” as defined in Section 17039, a credit in an amount equal to any expense paid or incurred by a qualified taxpayer for an employee obtaining a food handler card in compliance with Section 113948 of the Health and Safety Code. Code, not to exceed two hundred fifty dollars ($250) per taxpayer per taxable year. (b) For purposes of this section, “qualified taxpayer” means a taxpayer that has less than 50 employees and all of the taxpayer’s employees are in compliance with Section 113948 of the Health and Safety Code. (c) The Franchise Tax Board may prescribe regulations that are necessary or appropriate to carry out the purposes of this section. (d) For purposes of complying with Section 41, with respect to this section and Section 23665, the Legislature finds and declares the purpose of this tax expenditure is to offset the costs of small businesses paying for their employees to get food handler cards. (e) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. SEC. 2. Section 23665 is added to the Revenue and Taxation Code, to read: 23665. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2029, there shall be allowed against the “tax,” as defined in Section 23036, a credit in an amount equal to any expense paid or incurred by a qualified taxpayer for an employee obtaining a food handler card in compliance with Section 113948 of the Health and Safety Code. Code, not to exceed two hundred fifty dollars ($250) per taxpayer per taxable year. (b) For purposes of this section, “qualified taxpayer” means a taxpayer that has less than 50 employees and all of the taxpayer’s employees are in compliance with Section 113948 of the Health and Safety Code. (c) The Franchise Tax Board may prescribe regulations that are necessary or appropriate to carry out the purposes of this section. (d) This section shall remain in effect only until December 1, 2030, and as of that date is repealed. SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.