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<ns0:Id>20250AB__069198AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-14</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-13</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>691</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Wallis</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Wallis</ns0:Name>
</ns0:Legislator>
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<ns0:Title>An act to add and repeal Section 17052.27 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.</ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal Income Tax Law: credits: pet adoption and medical expenses.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The Personal Income Tax Law allows various credits against the taxes imposed by that law.</html:p>
<html:p>This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would allow a credit against the taxes imposed by that law for the qualified pet adoption costs, as defined, not to exceed $250, and the qualified pet medical expenses, as defined, not to exceed $500, paid or incurred during the taxable year. The bill would prohibit a claim for qualified pet adoption costs for more than one qualified pet, as defined, during the life of the taxpayer. The bill would additionally prohibit a claim for qualified pet medical expenses with regard to more than one qualified pet during the life of the taxpayer, as provided. In the case of spouses filing a
joint return, the bill would apply these restrictions to each spouse separately. The bill would require a taxpayer to provide all information necessary to administer this credit, upon request and in the form and manner provided by the Franchise Tax Board, including, but not limited to, a declaration under penalty of perjury that the taxpayer has not previously claimed the credit. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.</html:p>
<html:p>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. </html:p>
<html:p>This bill also would include additional information required for any bill authorizing a new tax expenditure. </html:p>
<html:p>The
California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>YES</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_684140F1-DAE3-4A91-9181-9CFE30297973">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 17052.27 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_FA03D3BE-0599-4A5A-A491-8F8763CC4657">
<ns0:Num>17052.27.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2025, and before January 1, 2030, there shall be allowed as a credit against the “net tax,” as that term is defined in Section 17039, an amount equal to the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The qualified pet adoption costs paid or incurred by the taxpayer during the taxable year, not to exceed two hundred fifty dollars ($250).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The qualified pet medical expenses paid or incurred by the taxpayer during the taxable year, not to exceed five hundred dollars ($500).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section the following definitions shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Qualified animal rescue organization” means a public animal control agency or shelter, humane society shelter, or nonprofit rescue group that is exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code that is domiciled in this state and primarily engaged in rescuing and placing animals in permanent homes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Qualified pet” means a dog, cat, or other companion animal adopted from a qualified animal rescue organization that is not used by the taxpayer in a trade or business or for the production of income.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Qualified pet adoption costs” means the costs paid to a qualified animal rescue organization as adoption fees to secure the adoption of qualified pet.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Qualified pet medical expenses” means
unreimbursed amounts paid for veterinary care, including vaccinations, spaying or neutering, and other necessary medical treatments for a qualified pet in the first 12 months following adoption.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The credit allowed pursuant to paragraph (1) of subdivision (a) shall not be claimed more than once during the life of the taxpayer.
</html:p>
<html:p>
(B)
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The credit allowed pursuant to paragraph (2) of subdivision (a) shall not be claimed with regard to qualified pet medical expenses for more than one qualified pet during the life of the taxpayer, and shall not exceed five hundred dollars ($500) cumulatively for that qualified pet.
</html:p>
<html:p>
(2)
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In the case of spouses filing a joint return, the limitations described in paragraph (1) shall apply to each spouse separately.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The taxpayer shall provide, upon request and in the form and manner prescribed by the Franchise Tax Board, all documentation that the Franchise Tax Board determines necessary to administer this section, including, but not limited to, the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Receipt or certification from the qualified animal rescue organization specifying the adoption date, pet description, and adoption fee paid.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Receipts or invoices from a licensed veterinarian detailing the expenses incurred within the first 12 months following adoption.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A declaration under penalty of perjury that the taxpayer has not previously claimed the respective credit under this section in any prior taxable year, except as provided in paragraph (2) of subdivision (c).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes complying with Section 41, the Legislature finds and declares the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The specific purpose of the credit authorized by this section is to encourage the adoption of pets from rescue organizations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The performance indicators for the Legislature to use in determining whether the credit achieves its stated goal are the number of taxpayers allowed a credit and the total dollar value of credits allowed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On or before December 1, 2026, and annually thereafter, the Franchise Tax Board shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing the number of taxpayers allowed a credit pursuant to this section and the total dollar
value of credits allowed.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall remain operative only until December 1, 2030, and as of that date is repealed.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_BC54DB84-E59D-4572-9963-3BB04E6CCC12">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
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<ns0:BillSection id="id_D6C52A27-4E59-4574-BA4B-28ADAD3E5F99">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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