Today's Law As Amended


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AB-243 Personal income tax: deduction: medical expenses.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 17241 of the Revenue and Taxation Code is amended to read:

17241.
 (a) (1)  For taxable years beginning on or after January 1, 2015, and before January 1, 2022, and on or after January 1, 2027,  Section 213(a) of the Internal Revenue Code, relating to allowance of deduction, is modified by substituting “7.5 percent” for “10 percent.”
(2) For taxable years beginning on and after January 1, 2022, and before January 1, 2027, Section 213(a) of the Internal Revenue Code, relating to allowance of deduction, is modified by substituting “4 percent” for “7.5 percent.”
(b) Section 213(f) of the Internal Revenue Code, relating to special rule for 2013, 2014, 2015, and 2016, shall not apply.
SEC. 2.
 (a) For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:
(1) The goals, purposes, and objectives of the amendments made by this bill are the following:
(A) To help Californians pay for their health care premiums, as premiums have increased 55 percent since 2010, which is at least twice as fast as wages or inflation over the same time period.
(B) To allow Californians to deduct more of their health care expenses and pay less in state tax.
(2) The performance indicators for the Legislature to use when measuring whether the tax exemption meets the goals, purposes, or objectives specified in paragraph (1) will be the following:
(A) The change in number of taxpayers receiving the deduction under Section 17241 of the Revenue and Taxation Code for taxable years after enactment of the amendments made by this bill, compared to the number of taxpayers receiving that deduction for taxable years prior to the enactment of the amendments made by this bill.
(B) The change in total deductions, in dollars, taken by taxpayers pursuant to Section 17241 of the Revenue and Taxation Code for taxable years after enactment of the amendments made by this bill, compared to the total deductions taken by taxpayers pursuant to that section for taxable years prior to the enactment of the amendments made by this bill.
(b) On or before February 1, 2026, notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall provide an anonymized report to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance with the number of taxpayers that claimed the deduction, and the total amount, in dollars, of deductions claimed by year for each taxable year beginning on or after January 1, 2015. The report shall be provided in compliance with Section 9795 of the Government Code.
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.