AB-984
Budget & Economy

Personal income taxes: deductions: CalABLE contributions.

Introduced
CA
2025-2026 Regular Session
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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 scheduled for , 1021 O Street, Room 1100
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

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 scheduled for , 1021 O Street, Room 1100
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

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