BILL NUMBER: SB 121	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 5, 2004

INTRODUCED BY   Senator Margett
    (Coauthors:  Senators Aanestad, Denham, Knight, and Morrow)

    (Coauthors:  Assembly Members Bates, Benoit, Cogdill,
Daucher, Dutton, Maddox, and Maze) 

                        FEBRUARY 3, 2003

   An act to add Section 17053.51 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 121, as amended, Margett.  Personal income taxes:  long-term
care.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would allow a credit for 30% of the amount paid or
incurred by the taxpayer for long-term care or long-term care
insurance for the taxpayer or any parent of the taxpayer, up to $300
per taxpayer.
   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.  Section 17053.51 is added to the Revenue and Taxation
Code, to read:
   17053.51.  (a) For taxable years beginning on or after January 1,
 2003   2004  , there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 30 percent of the amount paid or incurred by the taxpayer
during the taxable year for the cost of long-term care or long-term
care insurance for the taxpayer or any parent of the taxpayer.  The
credit  shall   may  not exceed three
hundred dollars ($300) per taxpayer, or six hundred dollars ($600)
for taxpayers filing jointly.
   (b) For purposes of this section, "long-term care insurance" shall
be defined by Section 7702B(b) of the Internal Revenue Code.
   (c) For purposes of this section, "parent" shall be defined as the
natural, biological, or adoptive mother or father of the taxpayer.
   (d) The long-term care facility or home caregiver shall provide
the taxpayer with written verification, specifying the name of the
taxpayer, payments made for the long-term care, the name of the
individual receiving the long-term care, and the time period covered.

   (e) 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.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.