What AB 1611 does
An act to add Sections 18031.6 and 24941.6 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, exclude the recognition of any gain or loss on the exchange of property held for productive use in a trade or business or for investment, if that property is exchanged solely for property of a like kind that is to be held either for productive use in a trade or business or for investment, unless an exception applies.
This bill would, under both the Personal Income Tax Law and Corporation Tax Law, prohibit the application of the above-described law to gain from the exchange of single-family residential rental real property, as defined, in this state if the taxpayer owns, as defined, 50 or more single-family residential rental real properties at the time of the sale. The bill would apply to exchanges completed on or after January 1, 2026, for purposes of taxable years commencing on or after January 1, 2026.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Summary from the Legislative Counsel's Digest of the amended assembly text, April 20, 2026. Read the full text on leginfo.
How it got here
Assemblymember Haney introduced AB 1611 on January 20, 2026. The text was amended 1 time, and heard in 2 committee hearings before its final floor votes.
Who supports and opposes AB 1611
The Assembly Revenue and Taxation analysis dated April 24, 2026 lists 25 organizations in support and 8 in opposition. When Assembly Revenue and Taxation first listed positions on April 3, 2026, the count was 13 in support and 8 opposed. By the Assembly Revenue and Taxation analysis of April 24, 2026 it was 25 to 8.
In support: Rise Economy (sponsor); AIDS Healthcare Foundation; Alliance of Californians for Community Empowerment Action; American Federation of State, County and Municipal Employees, AFL-CIO; California Coalition for Rural Housing; California Faculty Association; California Federation of Labor Unions, AFL-CIO; California Immigrant Policy Center; and 17 more.
Opposed: California Apartment Association; California Association of Realtors; California Building Industry Association; California Business Properties Association; California Chamber of Commerce; California Mortgage Bankers Association; National Rental Home Council; Southern California Rental Housing Association.
Read the Assembly Revenue and Taxation analysis.
What happens next
It is in a Assembly policy committee. The last recorded action was on April 27, 2026.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for housing organizations
This is the stage where language still changes. Amendments taken in committee are the ones that reach the Governor, so an organization with a stake in the drafting has a reason to be in that conversation now rather than after the vote.
The housing group at Capitol Axis handles that for housing clients.
Questions about AB 1611
What does AB 1611 do?
This bill would, under both the Personal Income Tax Law and Corporation Tax Law, prohibit the application of the above-described law to gain from the exchange of single-family residential rental real property, as defined, in this state if the taxpayer owns, as defined, 50 or more single-family residential rental real properties at the time of the sale. The bill would apply to exchanges completed on or after January 1, 2026, for purposes of taxable years commencing on or after January 1, 2026.
Has AB 1611 passed the California Legislature?
It is in a Assembly policy committee. The last recorded action was on April 27, 2026.
Who supports and opposes AB 1611?
The Assembly Revenue and Taxation analysis dated April 24, 2026 lists 25 organizations in support and 8 in opposition. Supporters include Rise Economy (sponsor); AIDS Healthcare Foundation; Alliance of Californians for Community Empowerment Action. Opponents include California Apartment Association; California Association of Realtors; California Building Industry Association.
What happens next with AB 1611?
It still has committee and floor votes ahead of it. Amendments taken now are the ones that reach the Governor, so this is the stage where language changes are still possible.