Personal Income Tax Law: credits: pet adoption and medical expenses.

Plain English Breakdown

The official source material does not explicitly state the requirement for taxpayers to provide proof and sign under penalty of perjury, but it is implied in the bill summary text.

Pet Adoption and Medical Expense Tax Credits

AB-691 creates tax credits for pet adoption costs up to $250 and medical expenses up to $500, but limits these credits per person or spouse.

What This Bill Does

• Creates a new tax credit of up to $250 for the cost of adopting a pet.
• Creates a new tax credit of up to $500 for qualified pet medical expenses.
• Requires taxpayers to provide proof and sign under penalty of perjury that they have not claimed this credit before.
• Limits each taxpayer or spouse filing jointly to one claim for pet adoption costs and one claim for pet medical expenses during their lifetime.

Who It Names or Affects

• Taxpayers who adopt pets or pay for pet medical expenses.
• The Franchise Tax Board, which will manage the new tax credits.

Terms To Know

Qualified Pet Adoption Costs

Expenses related to adopting a pet that are allowed as part of the new tax credit.

Qualified Pet Medical Expenses

Medical costs for pets that qualify for the tax credit.

Limits and Unknowns

• The bill only applies from January 1, 2025 to December 31, 2029.
• It does not specify what happens if a taxpayer moves out of California during this period.

Official Summary Text

AB 691, as amended, Wallis.
Property taxes.
Personal Income Tax Law: credits: pet adoption and medical expenses.
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, and before January 1, 2030, would allow a credit against the taxes imposed by that law for the qualified pet adoption costs, as defined, not to exceed $250, and the qualified pet medical expenses, as defined, not to exceed $500, paid or incurred during the taxable year. The bill would prohibit a claim for qualified pet adoption costs for more than one qualified pet, as defined, during the life of the taxpayer. The bill would additionally prohibit a claim for qualified pet medical expenses with regard to more than one qualified pet during the life of the taxpayer, as provided. In the case of spouses filing a
joint return, the bill would apply these restrictions to each spouse separately. The bill would require a taxpayer to provide all information necessary to administer this credit, upon request and in the form and manner provided by the Franchise Tax Board, including, but not limited to, a declaration under penalty of perjury that the taxpayer has not previously claimed the credit. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
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.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
The
California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would take effect immediately as a tax levy.
Existing law requires that notice of impending property tax default be published according to specified procedures.
This bill would make nonsubstantive changes to this provision.

Current Bill Text

Download Bill PDF