Plain English Breakdown
The official text uses the phrase 'specified taxpayers' but does not explicitly list who qualifies beyond those contributing to CalABLE accounts.
Tax Deduction for CalABLE Contributions
For taxable years starting between January 1, 2026, and before January 1, 2031, this law allows specified taxpayers to deduct contributions made to a CalABLE account when calculating their adjusted gross income.
What This Bill Does
- Allows a deduction equal to the amount contributed by specified taxpayers to a CalABLE account during the taxable year.
- Applies only to taxable years beginning on or after January 1, 2026, and before January 1, 2031.
- Includes required goals, performance indicators, and data collection rules for this new tax expenditure.
Who It Names or Affects
- Specified taxpayers who contribute to CalABLE accounts during the eligible years.
- The California ABLE Act Board, which administers the state's Qualified ABLE Program.
Terms To Know
- CalABLE
- California's Qualified ABLE Program that helps individuals with disabilities save for health and living costs while maintaining government benefits.
- Tax Deduction
- An amount subtracted from gross income to calculate adjusted gross income, which can lower the tax owed.
Limits and Unknowns
- The deduction is only available for taxable years starting between January 1, 2026, and before January 1, 2031.
- The official text does not specify a maximum dollar limit on the amount that can be deducted.