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    AB-984
    Budget & Economy

    Personal income taxes: deductions: CalABLE contributions.

    Introduced
    CA
    ∙
    2025-2026 Regular Session
    0
    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 Appropriations
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Assembly Revenue And Taxation Hearing
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    Assembly Revenue And Taxation Hearing
    Read first time. To print.
    Assembly Floor
    Read first time. To print.
    Read first time. To print.

    Contacts

    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike FongD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Diane DixonR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Profile
    Mike FongD
    Assemblymember
    Committee Member
    Profile
    Diane DixonR
    Assemblymember
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Committee Member
    Profile
    Blanca PachecoD
    Assemblymember
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Committee Member
    Profile
    Kate SanchezR
    Assemblymember
    Committee Member
    Profile
    Stephanie NguyenD
    Assemblymember
    Bill Author
    Profile
    Tri TaR
    Assemblymember
    Committee Member
    Profile
    Jessica CalozaD
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    Heather HadwickR
    Assemblymember
    Committee Member
    Profile
    Jose SolacheD
    Assemblymember
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    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)

    Latest Voting History

    View History
    May 5, 2025
    PASS
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    AyesNoesNVRTotalResult
    7007PASS

    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 Appropriations
    Next Step
    Assembly Committee
    Referred to the Assembly Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Assembly Revenue And Taxation Hearing
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    Assembly Revenue And Taxation Hearing
    Read first time. To print.
    Assembly Floor
    Read first time. To print.
    Read first time. To print.

    Latest Voting History

    View History
    May 5, 2025
    PASS
    Assembly Committee
    Assembly Revenue And Taxation Hearing
    AyesNoesNVRTotalResult
    7007PASS

    Contacts

    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike FongD
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Diane DixonR
    Assemblymember
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Joaquin ArambulaD
    Assemblymember
    Committee Member
    Profile
    Buffy WicksD
    Assemblymember
    Committee Member
    Profile
    Lisa CalderonD
    Assemblymember
    Committee Member
    Profile
    Mike FongD
    Assemblymember
    Committee Member
    Profile
    Diane DixonR
    Assemblymember
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Committee Member
    Profile
    Blanca PachecoD
    Assemblymember
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Committee Member
    Profile
    Kate SanchezR
    Assemblymember
    Committee Member
    Profile
    Stephanie NguyenD
    Assemblymember
    Bill Author
    Profile
    Tri TaR
    Assemblymember
    Committee Member
    Profile
    Jessica CalozaD
    Assemblymember
    Committee Member
    Profile
    Mark GonzalezD
    Assemblymember
    Committee Member
    Profile
    Heather HadwickR
    Assemblymember
    Committee Member
    Profile
    Jose SolacheD
    Assemblymember
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    Committee Member