Personal income tax: senior tax credit.

Plain English Breakdown

The bill summary does not provide details on the specific goals, performance indicators, or data collection requirements for this tax expenditure.

Senior Tax Credit

The bill creates a senior tax credit of $1,500 per dependent for each taxable year from January 1, 2026 to December 31, 2030, for taxpayers aged 65 or older who do not have earned income.

What This Bill Does

• Creates a new tax credit of $1,500 per dependent for each taxable year beginning on or after January 1, 2026 and before January 1, 2031.
• Defines 'qualified taxpayer' as someone aged 65 or older by the end of their taxable year and whose income does not come from earned sources.
• Includes additional information required for any bill that creates a new tax expenditure.

Who It Names or Affects

• Taxpayers aged 65 or older who do not have earned income.
• People with dependents who qualify for the senior tax credit.

Terms To Know

tax expenditure

A reduction in government revenue caused by a tax break, such as a deduction, exemption, or credit.

qualified taxpayer

A person who meets the specific criteria set by the bill to receive the senior tax credit.

Limits and Unknowns

• The bill only applies for taxable years from January 1, 2026 to December 31, 2030.
• It is not clear how many taxpayers will qualify for this new credit.

Official Summary Text

SB 1096, as introduced, Dahle.
Personal income tax: senior tax credit.
The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit of $227 for each dependent, as defined, of a taxpayer for each taxable year beginning on or after January 1, 1999, as adjusted for inflation, and which may be reduced if a taxpayer’s federal adjusted gross income exceeds a threshold amount.
This bill would allow a credit against the taxes imposed by the Personal Income Tax Law for each taxable year beginning on or after January 1, 2026, and before January 1, 2031, to a qualified taxpayer in an amount equal to $1,500 per dependent. The bill would define “qualified taxpayer” for these purposes to mean a taxpayer who is or would have been, or whose spouse is or would have been, as applicable, 65 years of age or older as of the last day of the taxable year and for whom no part of their adjusted
gross income for the taxable year consists of earned income, as defined.
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.
This bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF