SB-785 • 2026

Personal income tax: credit: durable medical equipment.

Healthcare Taxes

Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor: Caballero
Last action: 2026-03-02
Official status: Veto sustained.
Effective date: Not listed

Plain English Breakdown

The bill was vetoed by the governor on March 2, 2026. It is not clear if lawmakers will override this veto.

Personal Income Tax Credit for Durable Medical Equipment

The bill creates a personal income tax credit to help cover half of the cost of durable medical equipment purchases for dependents, up to $5,000 per year.

What This Bill Does

Creates a new tax credit that covers 50% of unreimbursed costs paid or incurred by taxpayers for purchasing durable medical equipment for their qualifying dependents, with an annual limit of $5,000 per dependent.
Limits this credit to purchases made between January 1, 2026 and December 31, 2030.

Who It Names or Affects

Taxpayers who buy durable medical equipment for their dependents
People with qualifying dependents who need such equipment

Terms To Know

Durable Medical Equipment: Medical devices and equipment that are designed to last a long time, like wheelchairs or hospital beds.
Qualifying Dependent: A person who relies on the taxpayer for financial support and needs durable medical equipment.

Limits and Unknowns

The bill was vetoed by the governor, but it is not clear if lawmakers will override this veto.
It only applies to purchases made between January 1, 2026 and December 31, 2030.

Bill History

2026-03-02 California Legislative Information
Veto sustained.
2026-03-02 California Legislative Information
Stricken from file.
2025-10-01 California Legislative Information
In Senate. Consideration of Governor's veto pending.
2025-10-01 California Legislative Information
Vetoed by the Governor.
2025-09-16 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-08 California Legislative Information
Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2578.) Ordered to engrossing and enrolling.
2025-09-04 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-04 California Legislative Information
Read third time. Passed. (Ayes 78. Noes 0. Page 2909.) Ordered to the Senate.
2025-09-02 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-15 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14). Re-referred to Com. on APPR.
2025-07-07 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-06-24 California Legislative Information
June 23 set for first hearing. Placed on REV. & TAX. suspense file.
2025-06-05 California Legislative Information
Referred to Com. on REV. & TAX.
2025-05-29 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-05-29 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1329.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Ordered to special consent calendar.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 6. Noes 0. Page 1213.) (May 23).
2025-05-20 California Legislative Information
Set for hearing May 23.
2025-05-19 California Legislative Information
May 19 hearing: Placed on APPR. suspense file.
2025-05-15 California Legislative Information
Set for hearing May 19.
2025-05-14 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1083.) (May 14). Re-referred to Com. on APPR.
2025-05-06 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-04-04 California Legislative Information
Set for hearing May 14.
2025-04-02 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-25 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-03-12 California Legislative Information
Referred to Com. on RLS.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 785, Caballero.
Personal income tax: credit: durable medical equipment.
The Personal Income Tax Law allows various credits against the tax imposed by that law.
This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in an amount equal to 50% of unreimbursed costs paid or incurred by a taxpayer for the purchase of durable medical equipment, as defined, for use by a qualifying dependent, as defined, during the taxable year. The bill would limit the credit to $5,000 per taxable year for each qualifying dependent.
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

Read the full stored bill text

Download Bill PDF