Amended in Assembly May 16, 2016

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, begin delete 2022, end delete begin insert 2019, end insert 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. begin insert The bill would require the amount of the credit to be multiplied by the tax credit adjustment factor, as specified. end insert

This bill would take effect immediately as a tax levy.

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 begin delete service men and women end delete begin insert servicemen and
servicewomen end insert 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)  begin insert (1) end insert begin insert   end insert For each taxable year beginning on or after
January 1, 2017, and before January 1, begin delete 2022, end delete begin insert 2019, end insert 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.

begin insert

(2) (A) The amount of the credit under this section shall be
multiplied by the tax credit adjustment factor for the taxable year.

end insert begin insert

(B) Unless otherwise specified in any budget measure, the tax
credit adjustment factor for a taxable year beginning on or after
January 1, 2016, shall be 0 percent.

end insert begin insert

(C) The tax credit authorized by this section shall only be
operative for taxable years for which resources are authorized in
any budget measure for the Franchise Tax Board to oversee and
audit returns associated with the credit.

end insert

(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” begin delete mean end delete begin insert means end insert the amounts paid or incurred
during the taxable year by a qualified disabled veteran for the
ownership and maintenance of a qualified animal that is limited
to the amounts paid as local fees for animal licenses; veterinary
care and medical-related expenses, such as vaccinations, annual
begin delete check-ups, end delete begin insert checkups, end insert and drug prescriptions; pet insurance
coverage expenses; expenses for begin delete speciality end delete begin insert specialty end insert 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 rating of at least 30
percent, as determined by the United States Department of Veterans
Affairs, and is assisted with any disability associated with that
rating by a qualified animal.

(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.

(d) In the case where the credit allowed by this section exceeds
the “net begin delete tax” end delete begin insert tax end insert begin insert ,” end insert the excess may be carried over to reduce the
“net begin delete tax,” end delete begin insert tax end insert begin insert ” end insert in the following year, and succeeding six years if
necessary, until the credit is exhausted.

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

(f) This section shall remain in effect only until December 1,
begin delete 2022, end delete begin insert 2019, end insert 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.