BILL NUMBER: AB 2472	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Member Linder

                        FEBRUARY 19, 2016

   An act to  amend Section 23400 of the Revenue and Taxation
Code, relating to taxation.   add and repeal Section
17059.50 of the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2472, as amended, Linder.  Corporation Tax Law:
alternative minimum tax.   Personal income taxes:
credits: disabled veterans: service animals.  
   The Personal Income Tax Law allows various credits against the
taxes imposed by that law.  
   This bill, for taxable years beginning on or after January 1,
2017, and before January 1, 2022, would allow a credit under the
Personal Income Tax Law in an amount equal to 50% of the amounts paid
or incurred during the taxable year by a qualified disabled veteran
for the ownership and maintenance of a qualified animal, not to
exceed $2,000 for a taxable year.  
   This act provides for a tax levy within the meaning of Article IV
of the Constitution and shall go into immediate effect. 

   Existing law, the Corporation Tax Law, in modified conformity with
federal law, makes a corporation subject to the alternative minimum
tax under specified circumtances. Existing law provides that a
corporation electing to be treated as an "S corporation" is not
subject to the alternative minimum tax.  
   This bill would make a nonsubstantive change to that provision.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) California is home to a large population of war veterans,
comprised of service men and women who have honorably served in the
line of duty.  
   (b) It is not uncommon for veterans, after experiencing the
horrors of war, to suffer from physical or mental health challenges,
or both.  
   (c) Common conditions war veterans are afflicted with include
post-traumatic stress disorder, traumatic brain injury, and
heightened anxiety.  
   (d) Trained animals are often used to assist disabled veterans in
their rehabilitation. An animal can greatly contribute to the veteran'
s sense of normalcy by providing support and companionship. 

   (e) The purpose of Section 17059.50 of the Revenue and Taxation
Code, as proposed to be added by this act, is to create an income tax
credit for disabled veterans, as determined by a disability rating
promulgated by the United States Department of Veterans Affairs, who
incur costs associated with ownership of a service dog. 
   SEC. 2.    Section 17059.50 is added to the 
 Revenue and Taxation Code   , to read:  
   17059.50.  (a) For each taxable year beginning on or after January
1, 2017, and before January 1, 2022, there shall be allowed a credit
against the "net tax," as defined by Section 17039, an amount equal
to 50 percent of the qualified costs of a qualified disabled veteran,
not to exceed two thousand dollars ($2,000) for a taxable year.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) "Qualified animal" means a guide dog, signal dog, or service
dog as defined in subparagraph (C) of paragraph (6) of subdivision
(b) of Section 54.1 of the Civil Code.
   (2) "Qualified costs" mean the amounts paid or incurred during the
taxable year by a qualified disabled veteran for the ownership and
maintenance of a qualified animal, including, but not limited to, the
amount paid as local fees for animal licenses; veterinary care and
medical-related expenses, such as vaccinations, annual check-ups, and
drug prescriptions; pet insurance coverage expenses; expenses for
speciality equipment, such as vests, leads, and harnesses; grooming
expenses; and food expenses.
   (3) "Qualified disabled veteran" means an individual who meets
both of the following conditions:
   (A) Has served on active duty with the Armed Forces of the United
States and received an honorable discharge for all periods of active
service.
   (B) Has a service-connected disability as determined by a
disability rating promulgated by the United States Department of
Veterans Affairs and is assisted with that disability by a qualified
animal.
   (c) In the case where the credit allowed by this section exceeds
the "net tax" the excess may be carried over to reduce the "net tax,"
in the following year, and succeeding years if necessary, until the
credit is exhausted.
   (d) Section 41 does not apply to the credit allowed by this
section.
   (e) This section shall remain in effect only until December 1,
2022, and as of that date is repealed. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 23400 of the Revenue and
Taxation Code is amended to read:
   23400.  (a) Part VI of Subchapter A of Chapter 1 of Subtitle A of
the Internal Revenue Code, relating to alternative minimum tax, shall
apply, except as otherwise provided.
   (b) A corporation that elects under Chapter 4.5 (commencing with
Section 23800) to be treated as an "S corporation" shall not be
subject to the tax imposed by this chapter.