<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
	


	<ns0:Description>
		<ns0:Id>20250SB__078595ENR</ns0:Id>
		<ns0:VersionNum>95</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-03-25</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-05-06</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-07-07</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>PASSED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-09-04</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-09-08</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>ENROLLED</ns0:ActionText>
				<ns0:ActionDate>2025-09-10</ns0:ActionDate>
			</ns0:Action>
		</ns0:History>
		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>785</ns0:MeasureNum>
			<ns0:MeasureState>ENR</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Caballero</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Caballero</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to add and repeal Section 17052.30 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: credit: durable medical equipment.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>The Personal Income Tax Law allows various credits against the tax imposed by that law.</html:p>
			<html:p>This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of unreimbursed costs paid or incurred by a taxpayer for the purchase of durable medical equipment, as defined, for use by a qualifying dependent, as defined, during the taxable year. The bill would limit the credit to $5,000 per taxable year for each qualifying dependent.</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>This bill would take effect immediately as a tax levy.</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
		</ns0:DigestKey>
		<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>
			</ns0:ImmediateEffectFlags>
		</ns0:MeasureIndicators>
	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_77FB63DA-79E5-4B8D-A2F4-47AD0980DE45">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares all of the following:</html:p>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					Families with medically complex children often face substantial out-of-pocket costs, even with private insurance or Medi-Cal coverage.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					Many essential durable medical equipment items like wheelchairs, ventilators, feeding pumps, or home monitors are either not fully covered, denied by insurance, or require families to pay upfront and appeal later.
				</html:p>
				<html:p>
					(c)
					<html:span class="EnSpace"/>
					According to the Lucile Packard Foundation for Children’s Health, California families of children with
				special health care needs are more likely to experience financial hardship than families with nondisabled children.
				</html:p>
				<html:p>
					(d)
					<html:span class="EnSpace"/>
					Low- and middle-income families often cannot afford the upfront costs of durable medical equipment, which can lead to delayed care or forced institutionalization.
				</html:p>
				<html:p>
					(e)
					<html:span class="EnSpace"/>
					Access to appropriate durable medical equipment at home often prevents costlier interventions, like emergency room visits or prolonged hospitalizations.
				</html:p>
				<html:p>
					(f)
					<html:span class="EnSpace"/>
					Supporting at-home care aligns with state and federal policy
				goals around deinstitutionalization and family preservation.
				</html:p>
				<html:p>
					(g)
					<html:span class="EnSpace"/>
					The intent of this bill is to provide much needed relief to taxpaying families who struggle with the out-of-pocket costs associated with medically necessary durable medical equipment.
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_5613B58B-942B-4567-A1C9-877566A6F685">
			<ns0:Num>SEC. 2.</ns0:Num>
			<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17052.30'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
				Section 17052.30 is added to the 
				<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
				, to read:
			</ns0:ActionLine>
			<ns0:Fragment>
				<ns0:LawSection id="id_2CF964B1-AE3D-4D14-8E03-909228332BD5">
					<ns0:Num>17052.30.</ns0:Num>
					<ns0:LawSectionVersion id="id_D31EF3A4-4CC4-4DAD-BEB2-FAD52CD29458">
						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								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 that term is defined in Section 17039, an amount equal to 50 percent of the qualified expenditures of a taxpayer during the taxable
						year.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The credit allowed by this section shall not exceed five thousand dollars ($5,000) per taxable year for each qualifying dependent.
							</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"/>
								“Complex medical conditions” include, but are not limited to, conditions where an individual would be eligible for early and periodic screening, diagnosis, and treatment services, as described in subdivision (v) of Section 14132 of the Welfare and Institutions Code.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Durable medical equipment”
						has the same meaning as that term is defined in Section 1395x(n) of Title 42 of the United States Code.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								“Qualified expenditure” shall mean an unreimbursed expense paid or incurred by the taxpayer for the purchase of durable medical equipment prescribed by a licensed health care provider for use by a qualifying dependent.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								“Qualifying dependent” means a dependent of the taxpayer who has one or more complex medical conditions and is younger than 18 years of age as of the first day of the taxable year. 
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								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 seven taxable years, if necessary, until the credit has been
						exhausted.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								If any credit allowed by this section is claimed by the taxpayer, any deduction otherwise allowed under this part for a qualified expenditure shall be reduced by twice the amount of the credit allowed.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The credit allowed pursuant to this section shall be in lieu of any other credit that the taxpayer may otherwise be allowed under this part with respect to amounts taken into account in calculating
						the credit allowed by this section. 
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								For purposes of complying with Section 41, the Legislature finds and declares as follows:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								The goal of this credit is to provide financial relief to families with children who have complex medical conditions that face large or consistent out-of-pocket expenses associated with expensive, medically necessary durable medical equipment.
							</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 shall be the number of taxpayers allowed a credit pursuant to this section, and the total dollar amount of credits allowed.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								The Franchise Tax Board, no later than July 1, 2028, and annually thereafter, 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 amount 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>
								(g)
								<html:span class="EnSpace"/>
								This section shall remain operative only until
						December 1, 2031, and as of that date is repealed.
							</html:p>
						</ns0:Content>
					</ns0:LawSectionVersion>
				</ns0:LawSection>
			</ns0:Fragment>
		</ns0:BillSection>
		<ns0:BillSection id="id_A7BE9327-4D74-445D-9222-61FBFABA0B44">
			<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>
			</ns0:Content>
		</ns0:BillSection>
	</ns0:Bill>
</ns0:MeasureDoc>