Assembly Member Nguyen's proposal to allow state tax deductions for CalABLE account contributions aims to increase financial support for Californians with disabilities through modifications to the state's tax code. The measure would permit taxpayers to deduct contributions made to CalABLE accounts from their adjusted gross income for tax years 2026 through 2030.
The bill builds upon the existing federal Stephen Beck, Jr., Achieving a Better Life Experience Act framework, which established tax-advantaged savings accounts for individuals with disabilities. Under current California law, the state conforms to federal income exclusions for qualified distributions from these accounts. The proposed legislation would create an additional state-level incentive by allowing contributors to deduct their CalABLE deposits when calculating state taxable income.
To evaluate the program's results, the bill requires the Franchise Tax Board to track contribution patterns and submit a comprehensive report to the Legislature by January 2031. The report must detail the total deductions claimed and assess whether the measure achieved its stated goal of increasing overall contributions to CalABLE accounts. The tax deduction provision would automatically sunset on December 1, 2031, unless extended by future legislation.
![]() Sharon Quirk-SilvaD Assembly Member | Committee Member | Not Contacted | |
![]() Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
![]() Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
![]() Jasmeet BainsD Assembly Member | Committee Member | Not Contacted | |
![]() Stephanie NguyenD Assembly Member | Bill Author | Not Contacted |
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Assembly Member Nguyen's proposal to allow state tax deductions for CalABLE account contributions aims to increase financial support for Californians with disabilities through modifications to the state's tax code. The measure would permit taxpayers to deduct contributions made to CalABLE accounts from their adjusted gross income for tax years 2026 through 2030.
The bill builds upon the existing federal Stephen Beck, Jr., Achieving a Better Life Experience Act framework, which established tax-advantaged savings accounts for individuals with disabilities. Under current California law, the state conforms to federal income exclusions for qualified distributions from these accounts. The proposed legislation would create an additional state-level incentive by allowing contributors to deduct their CalABLE deposits when calculating state taxable income.
To evaluate the program's results, the bill requires the Franchise Tax Board to track contribution patterns and submit a comprehensive report to the Legislature by January 2031. The report must detail the total deductions claimed and assess whether the measure achieved its stated goal of increasing overall contributions to CalABLE accounts. The tax deduction provision would automatically sunset on December 1, 2031, unless extended by future legislation.
![]() Sharon Quirk-SilvaD Assembly Member | Committee Member | Not Contacted | |
![]() Mike GipsonD Assembly Member | Committee Member | Not Contacted | |
![]() Tina McKinnorD Assembly Member | Committee Member | Not Contacted | |
![]() Jasmeet BainsD Assembly Member | Committee Member | Not Contacted | |
![]() Stephanie NguyenD Assembly Member | Bill Author | Not Contacted |