Security Industry Association Supports California Legislation Providing Retail Security Tax Credit

Modeled on legislation passed in New York in 2024, California AB 976 would offer small retailers a tax credit for security improvements.

SILVER SPRING, Md. – On March 24, 2025, the Security Industry Association (SIA) testified before the California Assembly Committee on Revenue and Taxation in support of California Assembly Bill 976, legislation that would establish a tax credit program for small retailers in disadvantaged communities who purchase or install security equipment.

The bill, introduced Feb. 20 by Assembly Member Anamarie Ávila Farías (D-15), would create a tax program modeled after New York’s Commercial Security Tax Credit program, but narrower in scope – focused on small retail businesses operating in disadvantaged communities – to assist businesses with one-time costs associated with the purchase and installation of new security equipment.

“Small retail businesses – especially those in communities with higher levels of crime – struggle to implement the protections required to safeguard their employees, merchandise and livelihoods,” said George Sewell, manager of government relations at SIA. “Theft impacting small retailers causes harm not just to business owners, but also to customers in the form of higher prices to make up losses and to governments in lost sales tax revenue, and retail crime also fuels in-store violence that costs victims their lives.”

SIA is the organizational sponsor of this legislation, which is also supported by the California Retailers Association, the Family Business Association of California and NFIB California.

“Retail theft is a serious challenge for both businesses and consumers, especially for small businesses in disadvantaged communities where security costs can be a major burden,” said Ávila Farías. “AB 976 creates a tax credit program to help businesses invest in security equipment, making it easier to protect their stores, support local economies and reduce costs for all Californians.”

SIA members seeking more insight into this legislation and proposed tax credit program can contact George Sewell, manager of government relations at SIA, at gsewell@securityindustry.org.  

About SIA

SIA is the leading trade association for global security solution providers, with over 1,500 innovative member companies representing thousands of security leaders and experts who shape the future of the security industry. SIA protects and advances its members’ interests by advocating pro-industry policies and legislation at the federal and state levels, creating open industry standards that enable integration, advancing industry professionalism through education and training, opening global market opportunities and collaborating with other like-minded organizations. As the premier sponsor of ISC Events expos and conferences, SIA ensures its members have access to top-level buyers and influencers, as well as unparalleled learning and network opportunities. SIA also enhances the position of its members in the security marketplace through SIA GovSummit, which brings together private industry with government decision makers, and Securing New Ground, the security industry’s top executive conference for peer-to-peer networking.