AIA California is pleased to report that Assembly Bill 1265 (Haney), legislation to renew and strengthen California’s Historic Preservation Tax Credit (HTC), passed out of the Assembly Committee on Revenue and Taxation last Monday and will next move to the Assembly Committee on Appropriations. The bill previously passed out of the Assembly Housing and Community Development Committee, marking continued progress through the Assembly policy process.

Originally established by the Legislature in 2019 through SB 451 (Atkins), the California Historic Preservation Tax Credit was created to encourage the rehabilitation and adaptive reuse of historic buildings. These projects play an important role in advancing housing production, supporting local economies, and reducing environmental impacts by reusing existing structures rather than demolishing and rebuilding.

However, early implementation of the credit revealed limitations that reduced its accessibility and statewide impact. AB 1265 renews the HTC and strengthens the program by improving predictability, aligning the state credit more closely with the federal historic tax credit, and ensuring that projects across California—large and small—can compete on equal footing.

From the perspective of architects, renewing the HTC is a critical tool for making complex rehabilitation projects financially viable. Adaptive reuse projects often face higher upfront costs, regulatory complexity, and financing challenges, even though they can deliver housing more quickly and with significantly lower embodied carbon than new construction. By strengthening the HTC, AB 1265 supports housing and mixed-use development, promotes climate-responsive design, and helps preserve the character and cultural heritage of California communities.

AIA California is proud to be a cosponsor of AB 1265, alongside the California Preservation Foundation. AIA California would like to thank the California Preservation Foundation for its leadership and partnership on this important issue and for its continued work to advance historic preservation, adaptive reuse, and community revitalization throughout California.

AIA California will continue to advocate for the bill as it moves through the legislative process and will keep members informed as AB 1265 advances through the legislative process.

AIA California’s 2025 advocacy efforts delivered major progress for the profession—strengthening the licensure pipeline, protecting project delivery, advancing housing and climate priorities, and supporting firms through key practice initiatives. These accomplishments reflect the coordinated leadership of AIA California members, committees, and statewide partners, who are committed to improving the built environment.