Amended in Assembly April 28, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2472

Introduced by Assembly Member Linder

February 19, 2016

An act to 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. 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.

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

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This bill would take effect immediately as a tax levy.

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Vote: majority. Appropriation: no. Fiscal committee: 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 begin delete animal, including, but not limited
to, the amount end delete begin insert animal that is limited to the amounts end insert 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 begin insert rating of at least 30
percent, end insert as determined begin delete by a disability rating promulgated end delete by the
United States Department of Veterans begin delete Affairs end delete begin insert Affairs, end insert and is
assisted with begin delete that disability end delete begin insert any disability associated with that
rating end insert by a qualified animal.

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(c) No other credit or deduction shall be allowed under this
part with respect to the amounts paid or incurred by a qualified
disabled veteran for a qualified animal that are taken into account
in computing the credit allowed under this section.

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(c)

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begin insert (d) end insert  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 begin insert six end insert years if necessary,
until the credit is exhausted.

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(d)

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begin insert (e) end insert  Section 41 does not apply to the credit allowed by this
section.

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(e)

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begin insert (f) end insert  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.