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

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Date Published: 04/10/2018 09:00 PM
AB3128:v98#DOCUMENT

Amended  IN  Assembly  April 10, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 3128

Introduced by Assembly Member Chen

February 16, 2018

An act to add and repeal Section 17053.45 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 3128, as amended, Chen. Personal income tax: credit: disabled veteran: service dog.
The Personal Income Tax Law allows various credits against the taxes imposed by that law.
This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2022, 2029, would allow a credit under the Personal Income Tax Law against those taxes in an amount equal to 50% of the amounts amount paid or incurred during the taxable year by a qualified disabled veteran for the ownership and maintenance of a service dog, not to exceed $1,500 for a taxable year.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


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, 2022, 2029, there shall be allowed to a qualified disabled veteran as a credit against the costs associated with owning a service dog in “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 amounts 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 of the United States 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 clause (iii) of 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.

(d)

(e) It is the intent of the Legislative Legislature to comply with Section 41.

(e)

(f)  This section shall remain in effect only until December 1, 2022, 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.