SB 1249

SB1249:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 1249

An act to amend Section 17072 of, and to add and repeal Section 17213 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1249, as amended, Richardson. Personal income taxes: deductions: elderly senior dependents. seniors.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.

This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for a qualified taxpayer in a specified amount calculated based on the taxpayer’s household size and number of elderly senior dependents, as those terms are defined. an amount equal to $6,000 per qualified individual, reduced by 6% of the taxpayer’s federal adjusted gross income in excess of specified thresholds. The bill would define “qualified taxpayer” individual” for these purposes to mean a taxpayer with household income less than or equal to 600% of the federal poverty level for the taxpayer’s household size, without regard for the above-described deduction, who claims one or more elderly senior dependents. the taxpayer if the taxpayer is an elderly senior and, in the case of a married couple filing a joint return, the taxpayer’s spouse if the taxpayer’s spouse is an elderly senior, and would define “elderly senior” to mean an individual who meets specified age criteria as of the last day of the taxable year.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would state the intent of the Legislature to comply with that requirement. include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Section 17072 of the Revenue and Taxation Code is amended to read:

17072.

(a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.

(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.

(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.

(d) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, Section 62(a) of the Internal Revenue Code, relating to the general rule, is modified to provide that the deduction under Section 17213 shall be allowed in determining adjusted gross income.

SEC. 2.

Section 17213 is added to the Revenue and Taxation Code, to read:

17213.

(a) (1) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, there shall be allowed a deduction from gross income to a qualified taxpayer in an amount calculated pursuant to equal to six thousand dollars ($6,000) for each qualified individual, subject to the reduction in paragraph (2).

(2) (A)The deduction allowed by this section shall be equal to the federal poverty level for the taxpayer’s household size multiplied by the ratio of the number of elderly senior dependents claimed for the taxable year over the household size. reduced by 6 percent of the applicable of the following:

(i) In the case of a married couple filing a joint return, the amount by which the taxpayer’s federal adjusted gross income exceeds one hundred fifty thousand dollars ($150,000).(ii) For all other filers, the amount by which the taxpayer’s federal adjusted gross income exceeds seventy-five thousand dollars ($75,000).(B) A reduction made pursuant to this paragraph shall not exceed the maximum value of the deduction.

(b) For the purposes of this section, the following definitions shall apply:

(1) “Elderly senior” means an individual who is the following age or older as of the last day of the taxable year:

(A) For taxable years beginning on or after January 1, 2027, and before January 1, 2028, 90 years of age.

(B) For taxable years beginning on or after January 1, 2028, and before January 1, 2029, 89 years of age.

(C) For taxable years beginning on or after January 1, 2029, and before January 1, 2030, 88 years of age.

(D) For taxable years beginning on or after January 1, 2030, and before January 1, 2031, 87 years of age.

(E) For taxable years beginning on or after January 1, 2031, and before January 1, 2032, 86 years of age.

(2)“Federal poverty level” means the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under authority of subsection (2) of Section 9902 of Title 42 of the United States Code.

(3)“Household income” shall have the same meaning as defined in Section 120960 of the Health and Safety Code.

(4)“Household size” means the following:

(A)Except as specified in subparagraph (B), one plus the number of dependents properly claimed for the taxable year.

(B)In the case of a taxpayer who is a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, two plus the number of dependents properly claimed for the taxable year.

(5)“Qualified taxpayer” means a taxpayer for whom household income is less than or equal to 600 percent of the federal poverty level for their household size, without regard for the deduction provided by this section, and who claims one or more elderly senior dependents.

(c)It is the intent of the Legislature to comply with Section 41.

(2) “Qualified individual” means both of the following:(A) The taxpayer if the taxpayer is an elderly senior.(B) In the case of a married couple filing a joint return, the taxpayer’s spouse if the taxpayer’s spouse is an elderly senior.(c) (1) For the purpose of complying with Section 41 with respect to the deduction provided by this section, the Legislature finds and declares the following:(A) The specific goal, purpose, and objective of the tax expenditure is to provide essential relief to elderly individuals who are facing significant economic challenges and are least able to absorb rising costs.(B) The performance indicators for the Legislature to use in determining if the tax expenditure achieves the stated goal, purpose, and objective shall be the all of the following: (i) The number of qualified taxpayers that claimed the deduction for one elderly senior.(ii) The number of qualified taxpayers that claimed the deduction for two elderly seniors.(iii) The total number of qualified taxpayers that claimed the deduction.(iv) The aggregate amount of deductions claim.(2) On or before May 1, 2029, and annually thereafter, the Franchise Tax Board shall submit to the Legislature, in accordance with Section 9795 of the Government Code, a written report that includes, to the extent feasible, all of the following:(A) The amounts described in clauses (i) to (iv), inclusive, of subparagraph (B) of paragraph (1).(B) A breakdown of the data described in clauses (i) to (iv), inclusive, of subparagraph (B) of paragraph (1), by federal adjusted gross income, into the following categories:(i) Adjusted gross income less than one hundred fifty thousand dollars ($150,000) in the case of a married couple filing a joint return or less than seventy-five thousand dollars ($75,000) for all other filers.(ii) Adjusted gross income above one hundred fifty thousand dollars ($150,000) and less than two hundred thousand dollars ($200,000) in the case of a married couple filing a joint return or above seventy-five thousand dollars ($75,000) but less than one hundred thousand dollars ($100,000) for all other filers.(iii) Adjusted gross income above two hundred thousand dollars ($200,000) and less than two hundred fifty thousand dollars ($250,000) in the case of a married couple filing a joint return or above one hundred thousand dollars ($100,000) but less than one hundred twenty-five thousand dollars ($125,000) for all other filers.(iv) Adjusted gross income above three hundred thousand dollars ($300,000) and less than three hundred twenty-five thousand dollars ($325,000) in the case of a married couple filing a joint return or above one hundred fifty thousand ($150,000) but less than one hundred sixty-two thousand five hundred dollars ($162,500) for all other filers.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.

(d) This section shall remain in effect only until December 1, 2033, 2032, and as of that date is repealed.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.