The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.

This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for a qualified taxpayer in a specified amount calculated based on the taxpayer’s household size and number of elderly senior dependents, as those terms are defined. The bill would define “qualified taxpayer” for these purposes to mean a taxpayer with household income less than or equal to 600% of the federal poverty level for the taxpayer’s household size, without regard for the above-described deduction, who claims one or more elderly senior dependents.

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 would state the intent of the Legislature to comply with that requirement.

This bill would take effect immediately as a tax levy.