AMENDED IN SENATE MAY 14, 2026

AMENDED IN SENATE APRIL 23, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

TAX LEVY

Introduced by Senator Richardson

February 19, 2026

An act to amend Section 17072 of, and to add and repeal Section 17213 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.

This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for a taxpayer in an amount equal to $6,000 $3,000 per qualified individual, reduced by 6% of the taxpayer’s federal adjusted gross income in excess of specified thresholds. The bill would define “qualified individual” for these purposes to mean the taxpayer if the taxpayer is an elderly senior and, in the case of a married couple filing a joint return, the taxpayer’s spouse if the taxpayer’s spouse is an elderly senior, and would define “elderly senior” to mean an individual who meets specified age criteria as of the last day of the taxable year.

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 would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

The people of the State of California do enact as follows:

SECTION 1.

Section 17072 of the Revenue and Taxation Code is amended to read:

17072.

(a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.

(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.

(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys attorney’s fees relating to awards to whistleblowers, shall not apply.

(d) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, Section 62(a) of the Internal Revenue Code, relating to the general rule, is modified to provide that the deduction under Section 17213 shall be allowed in determining adjusted gross income.

SEC. 2.

Section 17213 is added to the Revenue and Taxation Code, to read:

17213.

(a) (1) For taxable years beginning on or after January 1, 2027, and before January 1, 2032, there shall be allowed a deduction from gross income to a taxpayer in an amount equal to six three thousand dollars ($6,000) ($3,000) for each qualified individual, subject to the reduction in paragraph (2).

(2) (A) The deduction allowed by this section shall be reduced by 6 percent of the applicable of the following:

(i) In the case of a married couple filing a joint return, the amount by which the taxpayer’s federal adjusted gross income exceeds one hundred fifty thousand dollars ($150,000).

(ii) For all other filers, the amount by which the taxpayer’s federal adjusted gross income exceeds seventy-five thousand dollars ($75,000).

(B) A reduction made pursuant to this paragraph shall not exceed the maximum value of the deduction.

(b) For the purposes of this section, the following definitions shall apply:

(1) “Elderly senior” means an individual who is the following age or older as of the last day of the taxable year:

(A) For taxable years beginning on or after January 1, 2027, and before January 1, 2028, 90 years of age.

(B) For taxable years beginning on or after January 1, 2028, and before January 1, 2029, 89 years of age.

(C) For taxable years beginning on or after January 1, 2029, and before January 1, 2030, 88 years of age.

(D) For taxable years beginning on or after January 1, 2030, and before January 1, 2031, 87 years of age.

(E) For taxable years beginning on or after January 1, 2031, and before January 1, 2032, 86 years of age.

(2) “Qualified individual” means both of the following:

(A) The taxpayer if the taxpayer is an elderly senior.

(B) In the case of a married couple filing a joint return, the taxpayer’s spouse if the taxpayer’s spouse is an elderly senior.

(c) (1) For the purpose of complying with Section 41 with respect to the deduction provided by this section, the Legislature finds and declares the following:

(A) The specific goal, purpose, and objective of the tax expenditure is to provide essential relief to elderly individuals who are facing significant economic challenges and are least able to absorb rising costs.

(B) The performance indicators for the Legislature to use in determining if the tax expenditure achieves the stated goal, purpose, and objective shall be the all of the following:

(i) The number of qualified taxpayers that claimed the deduction for one elderly senior.

(ii) The number of qualified taxpayers that claimed the deduction for two elderly seniors.

(iii) The total number of qualified taxpayers that claimed the deduction.

(iv) The aggregate amount of deductions claim.

(2) On or before May 1, 2029, and annually thereafter, the Franchise Tax Board shall submit to the Legislature, in accordance with Section 9795 of the Government Code, a written report that includes, to the extent feasible, all of the following:

(A) The amounts described in clauses (i) to (iv), inclusive, of subparagraph (B) of paragraph (1).

(B) A breakdown of the data described in clauses (i) to (iv), inclusive, of subparagraph (B) of paragraph (1), by federal adjusted gross income, into the following categories:

(i) Adjusted gross income less than one hundred fifty thousand dollars ($150,000) in the case of a married couple filing a joint return or less than seventy-five thousand dollars ($75,000) for all other filers.

(ii) Adjusted gross income above one hundred fifty thousand dollars ($150,000) and less than two hundred thousand dollars ($200,000) in the case of a married couple filing a joint return or above seventy-five thousand dollars ($75,000) but less than one hundred thousand dollars ($100,000) for all other filers.

(iii) Adjusted gross income above two hundred thousand dollars ($200,000) and less than two hundred fifty thousand dollars ($250,000) in the case of a married couple filing a joint return or above one hundred thousand dollars ($100,000) but less than one hundred twenty-five thousand dollars ($125,000) for all other filers.

(iv) Adjusted gross income above three hundred thousand dollars ($300,000) and less than three hundred twenty-five thousand dollars ($325,000) in the case of a married couple filing a joint return or above one hundred fifty thousand ($150,000) but less than one hundred sixty-two thousand five hundred dollars ($162,500) for all other filers.

(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.

(d) This section shall remain in effect only until December 1, 2032, and as of that date is repealed.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.