AB-984 • 2026

Personal income taxes: deductions: CalABLE contributions.

Budget Taxes

Passed Legislature

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

Sponsor: Nguyen
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 official source material does not provide specific details on the performance indicators, goals, and data collection requirements mentioned in the candidate explanation.

CalABLE Contributions Deduction

AB-984 allows California residents to deduct contributions made to CalABLE accounts from their personal income taxes for the years 2026 through 2030.

What This Bill Does

Allows taxpayers to subtract money they put into a CalABLE account from their state income tax starting in 2026.
The deduction can be used until the year 2030, but not after.

Who It Names or Affects

California residents who contribute to CalABLE accounts.

Terms To Know

CalABLE: A California program that helps people save money for disability-related expenses.
Tax Deduction: Money you can subtract from your income before calculating how much tax you owe.

Limits and Unknowns

The bill only allows the deduction until 2030.
It does not say what happens after 2030 or if it will be extended.

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.
2025-05-23 California Legislative Information
In committee: Held under submission.
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-06 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.
2025-03-24 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2025-03-10 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2025-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 984, as introduced, Nguyen.
Personal income taxes: deductions: CalABLE contributions.
Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.
Existing law establishes in this state the Qualified ABLE Program, administered by the California ABLE Act Board, for purposes of implementing the federal ABLE Act.
Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to the exclusions from gross
income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in the federal Consolidated Appropriations Act, 2023. The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.
This bill, for each taxable year beginning on or after January 1, 2026, and before January 1, 2031, would allow a deduction under the Personal Income Tax Law in computing adjusted gross income in an amount equal to the amount contributed by specified taxpayers during the taxable year to a CalABLE account.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals 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