Personal income tax: credit: durable medical equipment.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Vetoed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill creates a state income tax credit for California residents who purchase durable medical equipment for qualifying dependents with complex medical conditions. The credit is 50% of unreimbursed costs, up to a maximum of $5,000 per year per dependent, starting in 2026. The bill aims to help families with significant out-of-pocket expenses related to essential medical equipment.
Key provisions
- Allows a 50% credit against state income tax for qualified durable medical equipment purchases.
- The credit is capped at $5,000 per taxable year per qualifying dependent.
- Qualifying dependents must have complex medical conditions as defined by the bill.
- The credit applies to expenses incurred beginning January 1, 2026, and before January 1, 2031.
- Excess credits can be carried over for up to seven years.
- Durable medical equipment is defined according to U.S. Code.
- A deduction for qualified expenditures is reduced by twice the credit amount.
- The Franchise Tax Board must report on credit usage annually.
Who is affected
- Taxpayers with qualifying dependents
- Families with children with complex medical conditions
- Individuals purchasing durable medical equipment
- The Franchise Tax Board
- California residents
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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