AB-984
Budget & Economy

Personal income taxes: deductions: CalABLE contributions.

Introduced
CA
2025-2026 Regular Session
0
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Track

Key Takeaways

  • Establishes new tax deductions for contributions to CalABLE accounts for disabled individuals from 2026 through 2030.
  • Requires the Franchise Tax Board to evaluate and report on the program's effectiveness by January 2031.
  • Automatically expires on December 1, 2031 unless renewed by the Legislature.

Summary

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.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing scheduled for , State Capitol, Room 126
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Stephanie NguyenD
Assembly Member
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assembly Member
Committee Member
Profile
Mike GipsonD
Assembly Member
Committee Member
Profile
Tina McKinnorD
Assembly Member
Committee Member
Profile
Jasmeet BainsD
Assembly Member
Committee Member
Profile
Stephanie NguyenD
Assembly Member
Bill Author
Profile
Tri TaR
Assembly Member
Committee Member
Profile
Carl DeMaioR
Assembly Member
Committee Member
Profile
Robert GarciaD
Assembly Member
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Stephanie Nguyen
Stephanie NguyenD
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Key Takeaways

  • Establishes new tax deductions for contributions to CalABLE accounts for disabled individuals from 2026 through 2030.
  • Requires the Franchise Tax Board to evaluate and report on the program's effectiveness by January 2031.
  • Automatically expires on December 1, 2031 unless renewed by the Legislature.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Stephanie Nguyen
Stephanie NguyenD
California State Assembly Member

Summary

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.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing scheduled for , State Capitol, Room 126
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assembly Member
Committee Member
Not Contacted
Not Contacted
Profile
Stephanie NguyenD
Assembly Member
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assembly Member
Committee Member
Profile
Mike GipsonD
Assembly Member
Committee Member
Profile
Tina McKinnorD
Assembly Member
Committee Member
Profile
Jasmeet BainsD
Assembly Member
Committee Member
Profile
Stephanie NguyenD
Assembly Member
Bill Author
Profile
Tri TaR
Assembly Member
Committee Member
Profile
Carl DeMaioR
Assembly Member
Committee Member
Profile
Robert GarciaD
Assembly Member
Committee Member