Plain English Breakdown
The official text mentions costs are 'as defined,' but does not provide the specific list of what counts as a qualified cost in this summary.
Tax Credits for Pet Adoption and Medical Costs
AB-691 creates a tax credit of up to $250 for pet adoption costs and up to $500 for medical expenses, available once per taxpayer's lifetime.
What This Bill Does
- Allows taxpayers to claim a credit of up to $250 for qualified pet adoption costs paid or incurred during the taxable year.
- Allows taxpayers to claim a credit of up to $500 for qualified pet medical expenses paid or incurred during the taxable year.
- Limits each taxpayer to claiming these credits only once in their lifetime per type of expense, restricted to one qualified pet.
- Applies these limits separately to each spouse if they file a joint tax return.
- Requires taxpayers to provide information requested by the Franchise Tax Board and sign a statement under penalty of perjury confirming they have not claimed this credit before.
Who It Names or Affects
- Taxpayers subject to California personal income tax who pay for qualified pet adoption or medical expenses.
- The Franchise Tax Board, which will administer the new credit and request necessary information from taxpayers.
- Local agencies regarding a state-mandated program related to expanding the scope of perjury.
Terms To Know
- Tax Credit
- An amount that lowers the total tax you owe dollar-for-dollar.
- Qualified Pet Adoption Costs
- Expenses for adopting a pet as defined by this law, limited to $250 per taxpayer lifetime.
- Perjury
- The crime of lying under oath or on an official document like a tax return; the bill expands where this applies.
Limits and Unknowns
- This credit only applies to taxable years beginning between January 1, 2025, and before January 1, 2030.
- The official text states costs must be 'as defined' but does not list the specific definition of qualified expenses in this summary.