BILL NUMBER: AB 2472	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 18, 2016
	AMENDED IN ASSEMBLY  MAY 16, 2016
	AMENDED IN ASSEMBLY  APRIL 28, 2016
	AMENDED IN ASSEMBLY  MARCH 18, 2016

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, 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
exceed  $2,000   $1,500  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:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California is home to a large population of war veterans,
comprised of servicemen and servicewomen 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) (1) For each taxable year beginning on or after
January 1, 2017, and before January 1, 2019, 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)
  one thousand five hundred dollars ($1,500)  for a
taxable year.
   (2) (A) The amount of the credit under this section shall be
multiplied by the tax credit adjustment factor for the taxable year.
   (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.
   (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.
   (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" means 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 checkups, and
drug prescriptions; pet insurance coverage expenses; expenses for
specialty 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 tax," the excess may be carried over to reduce the "net tax"
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,
2019, 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.