Personal income taxes: credit: medical services: rural areas.

Healthcare Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Tangipa
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The bill summary does not specify which medical services qualify for this credit.

Medical Services Credit in Rural Areas

AB-1431 creates a credit for personal income taxes to help people who earn money from providing medical services in rural areas of the state.

What This Bill Does

Creates a tax credit for qualified taxpayers who earn income from providing medical services in rural areas.
Limits the credit amount to $5,000 per year for each taxpayer.
Applies this credit to taxable years starting on or after January 1, 2026, and before January 1, 2031.

Who It Names or Affects

People who earn money from providing medical services in rural areas of the state.
Taxpayers who qualify for this new credit under the Personal Income Tax Law.

Terms To Know

Qualified taxpayer: A person or business that meets specific requirements set by the law to receive a tax benefit.
Tax expenditure: The loss of revenue for the government due to tax breaks, credits, or other incentives given to taxpayers.

Limits and Unknowns

Does not specify which medical services qualify for this credit.
Requires detailed information about goals and performance indicators for any new tax expenditure bill.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-05 California Legislative Information
In committee: Set, second hearing. Held under submission.
2025-04-29 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-07 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-03-13 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1431, as amended, Tangipa.
Personal income taxes: credit: medical services: rural areas.
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,
2025,
2026,
and before January 1,
2032,
2031,
would allow a credit against the taxes imposed by that law to a qualified taxpayer in an amount equal to the qualified income earned by the qualified taxpayer for medical
services
services, as defined,
performed in a rural area in the state, not to exceed $5,000 per taxable year, as specified.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF