Among the measures being considered by the California
Legislature are several bills involving tax credits. Here is a summary of
those bills. Due to the volume of bills, we can only provide a brief summary
of each. For a more complete description of the bills, along with our analysis,
visit our Laws and Legislation webpage. The address is: www.ftb.ca.gov/law/legis/index.shtml.
Assembly Bill 26 (Nation)
This bill would allow individuals a credit
for contributions to a Scholarshare account or to a qualified state
tuition program in another state made on behalf of any qualified
beneficiary. The credit amount would equal five percent, 12.5 percent, or
25 percent of the amount contributed, determined by the taxpayer's filing
status and adjusted gross income. Taxpayers with adjusted gross income
over $75,000 ($150,000 for married couples filing a joint return or a head
of household) would not be eligible to receive the credit. The
credit would be limited to $500 per qualified beneficiary.
AB 39 (Thomson)
This bill would provide an eligible
employer a refundable credit for providing health coverage for an eligible
individual and for that individual's dependent(s). The credit would equal
50 percent of the total amount paid or incurred per month for health
coverage provided by the employer. The employer would be required to pay
at least 75 percent of the monthly premiums and meet a number of other
AB 94 (Daucher)
This bill would allow a credit equal to the
total price paid or incurred by a qualified person for emission reduction
credits purchased for an electrical generating facility.
person would mean any person who owns or operates a facility
in this state that generates electricity and agrees to offer to sell the
electricity generated to purchasers within this state before offering that
electricity to purchasers outside this state.
AB 106 (Cedillo)
This bill would create a state credit based
on the federal earned income credit. The state credit would equal 15
percent of the federal credit reduced by the alternative minimum tax.
AB 149 (Zettel)
This bill would extend the application of
the recently enacted teacher retention credit to credentialed specialists,
as defined by the Education Code.
AB 166 (Cedillo)
This bill would establish a 25 percent
credit for the certified rehabilitation of a certified historic structure
within a redevelopment area. The amount eligible for the credit would be
based on the federal rehabilitation credit.
Excess credit amounts could be carried over until
AB 246 (Bill Campbell)
This bill would increase from 50 to 100
percent of the costs paid or incurred that may qualify a taxpayer for a
credit for adopting any minor child who is a citizen or legal resident of
the United States and was in the custody of a public agency. The credit
would continue to be limited to $2,500 per minor child.
AB 350 (Rod Pacheco)
This bill would allow taxpayers who are 65
years of age or older, as of December 31 of the taxable year, a 20 percent
credit for qualified medical expenses provided the taxpayer met certain
AB 462 (Wyland)
This bill would allow a 50 percent credit
for the amount paid or incurred for qualified expenses in connection with
lending a qualified employee to a public high school or community college located in
On our website you can find pertinent
information about the legislation we are tracking.
Go to www.ftb.ca.gov and click on the Law and Legislation
button. There you will find a preview of proposed tax law changes and our
analysis of how they might affect your clients if the legislation becomes
We also post proposed and final regulations, legal notices and
rulings, and links to the Revenue and
Taxation Code and the California Code of Regulations.
You can find the full text of bills,
resolutions, and constitutional amendments, and their status, history,
votes, analyses, and veto messages at www.leginfo.ca.gov, the
Official California Legislation Information