2026 Cost Cutters
As part of CalChamber’s Affordabilty Agenda, each year a list of Cost Cutter bills is released to identify legislation that reduces costs for businesses and consumers. CalChamber tracks these bills throughout the legislative session and works to educate legislators about the positive effect these bills will have on the state.
Issues and Bills
AB 2124 (Pacheco; D-Downey)Improves How the Legislature Evaluates the Cost of Energy Policy Decisions through Independent Ratepayer Impact Review. Supports more cost-effective policymaking by creating a framework for independent evaluation of proposed legislation that imposes costs on utility customers, helping identify unnecessary or duplicative programs and reducing future rate pressure. Vetoed.
AB 1693 (Zbur; D-Hollywood) Accelerated Building Plan Approval.Tenant Improvements. Streamlines permitting for tenant improvements at retail locations, while ensuring compliance with all applicable building, health, and safety requirements. To Governor.
SB 84 (Niello; R-Fair Oaks) Right to Cure. Provides businesses with time to cure an alleged Americans with Disabilities Act (ADA) violation to curb frivolous litigation. Two-Year Bill. In Assembly policy committee 6/18/2025. Failed deadline to pass Assembly policy committee 7/2/2026.
AB 2366 (Ávila Farías; D-Martinez)Requires State Agencies to Consider Fiscal Impacts on Cost of Living. Requires state agencies as well as the Legislative Analyst’s Office to evaluate regulations to determine their fiscal impact on cost of living in California, ensuring affordability is a consideration when the state is evaluating proposed new regulations. Held in Assembly Appropriations Committee 5/14/2026.
AB 1606 (Nguyen; D-Elk Grove) Cleanup Costs Tax Credit. Provides a tax credit for businesses that incur expenses to remove unauthorized encampments, illegal dumping, and abandoned property from commercial properties in California. Held in Assembly Appropriations Committee 5/14/2026.
AB 2205 (Quirk-Silva; D-Fullerton) New Employment Tax Credit. Reinstates California’s New Employment Credit (NEC), which has been uniquely effective in incentivizing businesses to hire full-time employees in designated census tracts and economic development areas. Held in Assembly Appropriations Committee 5/14/2026.