Bill > SB785

This bill introduces a tax credit to help families with children who have complex medical conditions offset the costs of durable medical equipment (DME) like wheelchairs, ventilators, and home monitors. For taxable years between 2026 and 2031, the bill allows taxpayers to claim a credit equal to 50% of unreimbursed expenses for DME prescribed for a qualifying dependent (a child under 18 with complex medical conditions), with a maximum credit of $5,000 per dependent per year. The credit can be carried forward for up to seven years if it exceeds the taxpayer's net tax. To ensure accountability, the Franchise Tax Board must submit annual reports to the Legislature detailing the number of taxpayers claiming the credit and the total dollar amount. The bill recognizes that families with medically complex children often face significant out-of-pocket expenses not fully covered by insurance, and aims to provide financial relief while supporting at-home care and preventing more costly medical interventions. Any deductions for qualified expenditures will be reduced by twice the amount of the credit, and this credit cannot be combined with other tax credits for the same expenses. The legislation is set to expire on December 1, 2031, and takes effect immediately as a tax levy.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB785