As stated earlier there is no seismic retrofit credit on the CA Form 540 or in the instructions. A form 540A is a short form version with limited income sources and limited deductions and credits. However the Form 540 has all the income sources and credits available in CA.
As noted earlier according to the instructions for the CA form 540: Financial Incentive for Seismic Improvement – Taxpayers can exclude from gross income any amount received as loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. Additional information can be found in the instructions for California Schedule CA (540).
If you received such a grant and it was included in your Federal Adjusted gross income for 2021 you can use a subtraction in your CA return. In your CA state interview continue to the page titled " Here's the income CA handles differently." Scroll to the bottom for topic "Other Adjustments to income."
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