Today's Law As Amended


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AB-3128 Personal income tax: credit: disabled veteran: service dog.(2017-2018)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) California is home to a large population of war veterans, comprised of service men and women who have honorably served in the line of duty.
(b) It is not uncommon for veterans, after experiencing the horrors of war, to suffer from physical or mental health challenges.
(c) Common conditions that war veterans are afflicted with include post-traumatic stress disorder, traumatic brain injury, and heightened anxiety.
(d) Trained animals are often used to assist disabled veterans in their rehabilitation. An animal can greatly contribute to a veteran’s sense of normalcy by providing support and companionship.
(e) The purpose of adding Section 17053.45 to the Revenue and Taxation Code is to create a tax credit for disabled veterans, as determined by a disability rating promulgated by the United States Department of Veterans Affairs, who incur costs associated with the ownership of a service dog.

SEC. 2.

 Section 17053.45 is added to the Revenue and Taxation Code, to read:

17053.45.
 (a) For taxable years beginning on or after January 1, 2019, and before January 1, 2029, there shall be allowed to a qualified disabled veteran as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the qualified disabled veteran’s qualified costs, not to exceed one thousand five hundred dollars ($1,500) during the taxable year.
(b) For purposes of this section:
(1) “Qualified costs” means the amount paid or incurred during the taxable year by a qualified disabled veteran for the ownership and maintenance of a service dog that is limited to the amounts paid as local fees for service dog licenses; veterinary care and medical-related expenses, including vaccinations, annual checkups, and drug prescriptions; pet insurance coverage expenses; expenses for specialty equipment, including vests, leads, and harnesses; grooming expenses; and food expenses.
(2) “Qualified disabled veteran” means an individual who meets both of the following conditions:
(A) Has served on active duty with the United States Armed Forces and received an honorable discharge for all periods of active service.
(B) Has a service-connected disability rating of at least 30 percent, as determined by the United States Department of Veterans Affairs, and is assisted with any disability associated with that rating by a service dog.
(3) “Service dog” means a service dog, guide dog, or signal dog, as defined in subparagraph (C) of paragraph (6) of subdivision (b) of Section 54.1 of the Civil Code.
(c)  In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year.
(d) This credit shall be in lieu of a deduction that the qualified disabled veteran may otherwise claim pursuant to this part with respect to qualified costs.
(e) It is the intent of the Legislature to comply with Section 41.
(f)  This section shall remain in effect only until December 1, 2029, and as of that date is repealed.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.