Regulation

AB 1294 — Moderate-Income Housing Welfare Exemption Pilot

Full name: California Assembly Bill 1294 (2025–2026 Regular Session): real property tax: welfare exemption: moderate-income housing
Citation: Cal. Rev. & Tax. Code § 214(h), added by AB 1294, Stats. 2026, ch. ___ (chapter number pending on LegInfo)
Jurisdiction: Cal.
In force: 2027-01-01
Text: leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB1294
Stories: 1

Tax

CAL.Regulation

California pilots partial property-tax exemption for moderate-income rental housing

Governor Gavin Newsom signed AB 1294 on September 29, 2026. It adds subdivision (h) to Revenue and Taxation Code section 214, a pilot partial welfare exemption equal to the value of rental units serving low- and moderate-income households. It covers properties in Alameda County, Sacramento County or San Francisco where units are newly built, or converted from commercial use, between January 1, 2027, and January 1, 2030.

Enrolled text (California Legislative Information) → · Office of the GovernorSept. 30