| 1 | | - | Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 785Introduced by Senator CaballeroFebruary 21, 2025An act to amend Section 1 of the Revenue and Taxation Code, relating to taxation. An act to add and repeal Section 17052.30 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTSB 785, as amended, Caballero. Taxation. Personal income tax: credit: durable medical equipment.The Personal Income Tax Law allows various credits against the tax imposed by that law.This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of costs paid or incurred by a taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent under the age of 18 years with complex medical conditions, not to exceed $5,000 per taxable year.This bill would take effect immediately as a tax levy.Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17052.30 is added to the Revenue and Taxation Code, to read:17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 1 of the Revenue and Taxation Code is amended to read:1.This act shall be known, and may be cited, as the Revenue and Taxation Code. |
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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 785Introduced by Senator CaballeroFebruary 21, 2025 An act to amend Section 1 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 785, as introduced, Caballero. Taxation.Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1 of the Revenue and Taxation Code is amended to read:1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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| 3 | | - | Amended IN Senate March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 785Introduced by Senator CaballeroFebruary 21, 2025An act to amend Section 1 of the Revenue and Taxation Code, relating to taxation. An act to add and repeal Section 17052.30 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTSB 785, as amended, Caballero. Taxation. Personal income tax: credit: durable medical equipment.The Personal Income Tax Law allows various credits against the tax imposed by that law.This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of costs paid or incurred by a taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent under the age of 18 years with complex medical conditions, not to exceed $5,000 per taxable year.This bill would take effect immediately as a tax levy.Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO |
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| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 785Introduced by Senator CaballeroFebruary 21, 2025 An act to amend Section 1 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 785, as introduced, Caballero. Taxation.Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 28 | | - | The Personal Income Tax Law allows various credits against the tax imposed by that law.This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of costs paid or incurred by a taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent under the age of 18 years with complex medical conditions, not to exceed $5,000 per taxable year.This bill would take effect immediately as a tax levy.Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions. |
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| 29 | | - | |
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| 30 | | - | The Personal Income Tax Law allows various credits against the tax imposed by that law. |
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| 31 | | - | |
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| 32 | | - | This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of costs paid or incurred by a taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent under the age of 18 years with complex medical conditions, not to exceed $5,000 per taxable year. |
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| 33 | | - | |
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| 34 | | - | This bill would take effect immediately as a tax levy. |
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| 28 | + | Existing law includes the Revenue and Taxation Code, under which various taxes are imposed, calculated, and administered.This bill would make nonsubstantive changes to those provisions. |
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| 48 | | - | The people of the State of California do enact as follows:SECTION 1. Section 17052.30 is added to the Revenue and Taxation Code, to read:17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.Section 1 of the Revenue and Taxation Code is amended to read:1.This act shall be known, and may be cited, as the Revenue and Taxation Code. |
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| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 1 of the Revenue and Taxation Code is amended to read:1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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| 54 | | - | SECTION 1. Section 17052.30 is added to the Revenue and Taxation Code, to read:17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 44 | + | SECTION 1. Section 1 of the Revenue and Taxation Code is amended to read:1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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| 60 | | - | 17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 50 | + | 1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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| 62 | | - | 17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 52 | + | 1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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| 64 | | - | 17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 65 | | - | |
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| 66 | | - | 17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year.(b) For purposes of this section, the following definitions shall apply:(1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider.(2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose.(3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions.(c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year.(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted.(e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed.(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.(g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 67 | | - | |
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| 68 | | - | 17052.30. (a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the net tax, as that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable year, not to exceed five thousand dollars ($5,000) per taxable year. |
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| 69 | | - | |
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| 70 | | - | (b) For purposes of this section, the following definitions shall apply: |
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| 71 | | - | |
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| 72 | | - | (1) Complex medical conditions include, but are not limited to, conditions requiring ongoing specialized care under the supervision or care of a licensed health care provider. |
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| 73 | | - | |
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| 74 | | - | (2) Durable medical equipment means equipment prescribed by a licensed health care provider that meets the definition under Section 1861(n) of the federal Social Security Act and is primarily and customarily used to serve a medical purpose. |
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| 75 | | - | |
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| 76 | | - | (3) Qualified expenditure shall mean an expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a dependent, under the age of 18 years at the start of the taxable year, with complex medical conditions. |
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| 77 | | - | |
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| 78 | | - | (c) A taxpayer may claim the credit allowed under this section once per dependent per taxable year. |
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| 79 | | - | |
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| 80 | | - | (d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year, and succeeding seven taxable years, if necessary, or until the credit has been exhausted. |
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| 81 | | - | |
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| 82 | | - | (e) If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the taxpayer that is eligible for the credit that is claimed shall be reduced by the amount of the credit allowed. |
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| 83 | | - | |
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| 84 | | - | (f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. |
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| 85 | | - | |
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| 86 | | - | (g) This section shall remain operative only until December 1, 2031, and as of that date is repealed. |
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| 87 | | - | |
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| 88 | | - | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 89 | | - | |
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| 90 | | - | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 91 | | - | |
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| 92 | | - | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 93 | | - | |
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| 94 | | - | ### SEC. 2. |
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| 54 | + | 1. This act shall be known known, and may be cited, as the Revenue and Taxation Code. |
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