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, 2019, 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 exceedbegin delete $2,000end deletebegin insert $1,500end insert for a taxable year. The bill would require the amount of the credit to be multiplied by the tax credit adjustment factor, as specified.
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:
The Legislature finds and declares all of the
2following:
3(a) California is home to a large population of war veterans,
4comprised of servicemen and servicewomen who have honorably
5served in the line of duty.
6(b) It is not uncommon for veterans, after experiencing the
7horrors of war, to suffer from physical or mental health challenges,
8or both.
9(c) Common conditions war veterans are afflicted with include
10post-traumatic stress disorder, traumatic brain injury, and
11heightened anxiety.
12(d) Trained animals are often used to assist disabled veterans
13in their rehabilitation. An animal can greatly contribute to the
14veteran’s sense of normalcy by providing support and
15companionship.
16(e) The purpose of Section 17059.50 of the Revenue and
17Taxation Code, as proposed to be added by this act, is to create an
18income tax credit for disabled veterans, as determined by a
19disability rating promulgated by the United States Department of
20Veterans Affairs, who incur costs associated with ownership of a
21service dog.
Section 17059.50 is added to the Revenue and Taxation
23Code, to read:
(a) (1) For each taxable year beginning on or after
25January 1, 2017, and before January 1, 2019, there shall be allowed
26a credit against the “net tax,” as defined by Section 17039, an
27amount equal to 50 percent of the qualified costs of a qualified
28disabled veteran, not to exceedbegin delete two thousand dollars ($2,000)end deletebegin insert one
29thousand five hundred dollars ($1,500)end insert for a taxable year.
30(2) (A) The amount of the credit under this section shall be
31multiplied by the tax credit
adjustment factor for the taxable year.
32(B) Unless otherwise specified in any budget measure, the tax
33credit adjustment factor for a taxable year beginning on or after
34January 1, 2016, shall be 0 percent.
35(C) The tax credit authorized by this section shall only be
36operative for taxable years for which resources are authorized in
37any budget measure for the Franchise Tax Board to oversee and
38audit returns associated with the credit.
P3 1(b) For the purposes of this section, the following definitions
2shall apply:
3(1) “Qualified animal” means a guide dog, signal dog, or service
4dog as defined in subparagraph (C) of paragraph (6) of subdivision
5(b) of Section 54.1
of the Civil Code.
6(2) “Qualified costs” means the amounts paid or incurred during
7the taxable year by a qualified disabled veteran for the ownership
8and maintenance of a qualified animal that is limited to the amounts
9paid as local fees for animal licenses; veterinary care and
10medical-related expenses, such as vaccinations, annual checkups,
11and drug prescriptions; pet insurance coverage expenses; expenses
12for specialty equipment, such as vests, leads, and harnesses;
13grooming expenses; and food expenses.
14(3) “Qualified disabled veteran” means an individual who meets
15both of the following conditions:
16(A) Has served on active duty with the Armed Forces of the
17United States and received an honorable discharge for all
periods
18of active service.
19(B) Has a service-connected disability rating of at least 30
20percent, as determined by the United States Department of Veterans
21Affairs, and is assisted with any disability associated with that
22rating by a qualified animal.
23(c) No other credit or deduction shall be allowed under this part
24with respect to the amounts paid or incurred by a qualified disabled
25veteran for a qualified animal that are taken into account in
26computing the credit allowed under this section.
27(d) In the case where the credit allowed by this section exceeds
28the “net tax,” the excess may be carried over to reduce the “net
29tax” in the following year, and succeeding six years if necessary,
30until the credit is
exhausted.
31(e) Section 41 does not apply to the credit allowed by this
32section.
33(f) This section shall remain in effect only until December 1,
34
2019, and as of that date is repealed.
This act provides for a tax levy within the meaning of
36Article IV of the Constitution and shall go into immediate effect.
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