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Sacramento, CA — Following a strong public rollout last week, AB 1435 – The Business Clean-Up Relief Act of 2025 – has been strengthened through key amendments that sharpen its focus and improve its fiscal accountability.
“AB 1435 is about helping property owners and small businesses deal with challenges that are outside of their control,” said Assemblymember Stephanie Nguyen (D-Elk Grove). “These amendments make the bill even stronger, ensuring targeted relief gets to the people who need it while protecting taxpayer dollars.”
Sponsored by the California Business Properties Association (CBPA), AB 1435 aims to provide targeted tax relief to property owners and businesses burdened by the growing costs of unauthorized encampment cleanup. The bill was heard in the Assembly Revenue and Taxation Committee last week and placed on the committee's suspense file for further fiscal review.
Since the hearing, Assemblymember Nguyen has worked with committee staff to draft amendments addressing concerns raised during the process. The changes include capping the annual tax credit at $20,000 per taxpayer and limiting eligibility to specific, verifiable cleanup expenses such as waste removal, sanitization, minor repairs, and passive deterrents like riprap. The amendments also exclude surveillance systems, ongoing security services, and employee labor costs from eligibility. These improvements ensure AB 1435 remains narrowly focused on immediate cleanup needs, limits fiscal exposure, and maintains integrity in program administration.
A final committee vote on AB 1435 is scheduled for Monday, May 5, where it will be reconsidered for advancement out of the Assembly Revenue and Taxation Committee. If approved, the bill will proceed to the Assembly Appropriations Committee.
“These amendments significantly tighten the scope of the bill and ensure it remains focused on one-time, verifiable cleanup activities,” said Matthew Hargrove, President and CEO of CBPA. “We’re grateful to Assemblymember Gipson and committee staff for their help in refining the bill language and thank Assemblymember Nguyen for her leadership and for working closely with stakeholders to strengthen the bill while keeping it responsive to real-world challenges facing property owners.”
AB 1435 continues to build momentum as business groups, city leaders like Sacramento Mayor Kevin McCarty, and community advocates rally behind efforts to support small businesses and commercial property owners impacted by unauthorized encampments on private property.
You can view AB 1435 as amended here and view the amendments here.
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