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Published date: August 21, 2026

SB 935 — California Senate Bill 935

SB 935 is a California state law that has been passed in two different legislative sessions, each with a different purpose.

2023–2024 Session (Personal Income Tax Law / Corporation Tax Law Credit)
Introduced by Senator Becker in January 2024, this version of SB 935 would have created a 20% tax credit for qualified taxpayers who develop qualified school staff housing projects. The credit would apply to taxable years beginning on or after January 1, 2025, and before January 1, 2030.

Key provisions included:

  • A “qualified school staff housing project” must be located on land owned by a school district or local government, developed by a qualified taxpayer, and occupied only by qualifying tenants (full-time school district employees).
  • The credit amount equals 20% of the project’s development costs.
  • Unused credits could be carried forward for up to five years.
  • The bill required the Franchise Tax Board to report annually on the number of taxpayers claiming the credit and the average credit amount.
  • The credit would have been repealed on December 1, 2030 Franchise Tax Board.

This version was amended multiple times and ultimately did not become law in the 2023–2024 session LegiScan.

2025–2026 Session (Local Agency Design-Build Projects Authorization)
Introduced by Senator Steven Choi in January 2026, this SB 935 permanently authorizes California’s local agencies (cities, counties, and other local governments) to use the design-build procurement method for public works projects over $1 million.

Design-build allows a single contractor to both design and construct a project, often reducing costs (about 6% less) and speeding completion (over 30% faster) compared to traditional design-bid-build methods sr37.senate.ca.gov.

Key points:

  • The bill repealed the January 1, 2031 sunset date for design-build authority, making it permanent.
  • It applies to local agencies with approval from their governing body.
  • The measure was signed into law by Governor Gavin Newsom on July 17, 2026, and is now part of the Statutes of 2026 sr37.senate.ca.gov.

In summary:

  • 2023–2024 SB 935: Proposed tax credit for school staff housing projects (not enacted).
  • 2025–2026 SB 935: Signed law permanently allowing local agencies to use design-build for public works projects.
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