Personal income tax: senior tax credit: dependents: qualifying child.
SB 1096
California Bills
20250SB__109698AMD INTRODUCED 2026-02-13 AMENDED_SENATE 2026-06-03 2025 SB AMD Introduced by Senator Dahle (Coauthor: Assembly Member Sanchez) LEAD_AUTHOR SENATE Dahle COAUTHOR ASSEMBLY Sanchez
An act to add and repeal
Section 17054.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Personal income tax: senior tax credit: dependents: qualifying child. The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit of $227 for each dependent, as defined, of a taxpayer for each taxable year beginning on or after January 1, 1999, as adjusted for inflation, and which may be reduced if a taxpayer’s federal adjusted gross income exceeds a threshold amount.
This bill would allow a credit against the taxes imposed by the Personal Income Tax Law for each taxable year beginning on or after January 1, 2026, and before January 1, 2031, to a qualified taxpayer in an amount equal to $1,500 per qualified dependent, as defined. The bill would define “qualified taxpayer” for these purposes to mean a taxpayer who is or would have been, or whose spouse is or would have been, as applicable, 65 years of age or older as of the last day of the taxable year and for whom no part of their adjusted gross income for the taxable year consists of earned income, as defined.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy. MAJORITY NO YES NO YES NO YES NO NO NO NO The people of the State of California do enact as follows:
SECTION
Section 17054.8 is added to the Revenue and Taxation Code , to read: 17054.8. (a)
(1) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the “net tax,” as defined by
Section 17039, a senior tax credit to a qualified taxpayer in an amount equal to one thousand five hundred dollars ($1,500) per qualified dependent claimed, subject to the reduction in paragraph (2). (2) (
A) The credit allowed by this
section shall be reduced by percent of the applicable of the following: (
i) In the case of spouses filing a joint return and surviving spouses, the amount by which the taxpayer’s federal adjusted gross income exceeds one hundred fifty thousand dollars ($150,000). (ii) For all other filers, the amount by which the taxpayer’s federal adjusted gross income exceeds seventy-five thousand dollars ($75,000). (
B) A reduction made pursuant to this paragraph shall not exceed the maximum value of the credit. (
b) For purposes of this section, the following
definitions shall apply: (1) “Earned income” shall have the same meaning as is provided in
Section 32(c)(2) of the Internal Revenue Code, relating to earned income. (2) “Qualified dependent” means a dependent who is a qualifying child of the taxpayer and for whom the taxpayer has not received any qualified foster care payments during the taxable year. (3) “Qualified foster care payment” shall have the same meaning as is provided in
Section of the Internal Revenue Code. (2)</xhtml:p>"?> (4) “Qualified taxpayer” means an individual who meets both of the following: (
A) The taxpayer, or the taxpayer or their spouse in the case of spouses filing joint returns and surviving spouses, is or would have been years of age or older as of the last day of the taxable year. (
B) No part of the taxpayer’s adjusted gross income for the taxable year consists of earned income. (5) “Qualifying child” shall have the same meaning as is provided in
Section 152(
c) of the Internal Revenue Code, relating to qualifying child. (
c) In the case where the credit allowed under this
section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding six taxable years, if necessary, until the credit has been exhausted. (c)</xhtml:p>"?> (d)
(1) For purposes of complying with
Section as it relates to the credit authorized by this section, the Legislature finds and declares that the specific goal, purpose, and objective of this credit is to provide assistance to retired senior taxpayers who are caring for dependents while the cost of living continues to rise.
(2) The Franchise Tax Board shall report to the Legislature, on or before July 1, 2032, and in compliance with
Section of the Government Code, the average amount of the credit allowed to a qualified taxpayer and the number of taxpayers allowed the credit. (3)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>Notwithstanding any other law, the Franchise Tax Board shall provide all information required to complete the report required by paragraph (2) to the Legislative Analyst’s Office.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The disclosure requirements of this paragraph shall be treated as an exception to
Section 19542.</xhtml:p><xhtml:p>(d)</xhtml:p>"?> (
e) This
section shall remain in effect only until December 1, 2031, and as of that date is repealed.
SEC. 2. This act provides for a tax levy within the meaning of