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Article Source: CA Legislature

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill No. 1096

Introduced by Senator Dahle

February 13, 2026

An act to add and repeal Section 17054.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1096, as introduced, Dahle. Personal income tax: senior tax credit.

The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit of $227 for each dependent, as defined, of a taxpayer for each taxable year beginning on or after January 1, 1999, as adjusted for inflation, and which may be reduced if a taxpayer’s federal adjusted gross income exceeds a threshold amount.

This bill would allow a credit against the taxes imposed by the Personal Income Tax Law for each taxable year beginning on or after January 1, 2026, and before January 1, 2031, to a qualified taxpayer in an amount equal to $1,500 per dependent. The bill would define “qualified taxpayer” for these purposes to mean a taxpayer who is or would have been, or whose spouse is or would have been, as applicable, 65 years of age or older as of the last day of the taxable year and for whom no part of their adjusted gross income for the taxable year consists of earned income, as defined.

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

This bill would take effect immediately as a tax levy.

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

SECTION 1. Section 17054.8 is added to the Revenue and Taxation Code, to read:
17054.8. (a) For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the “net tax,” as defined by Section 17039, a senior tax credit to a qualified taxpayer in an amount equal to one thousand five hundred dollars ($1,500) per dependent claimed.
(b) For purposes of this section, the following definitions shall apply:
(1) “Earned income” shall have the same meaning as provided in Section 32(c)(2) of the Internal Revenue Code, relating to earned income.
(2) “Qualified taxpayer” means an individual for whom both of the following are true:
(A) The taxpayer, or the taxpayer or their spouse in the case of spouses filing joint returns and surviving spouses, is or would have been 65 years of age or older as of the last day of the taxable year.
(B) No part of the taxpayer’s adjusted gross income for the taxable year consists of earned income.
(c) (1) For purposes of complying with Section 41 as it relates to the credit authorized by this section, the Legislature finds and declares that the specific goal, purpose, and objective of this credit is to provide assistance to retired senior taxpayers who are caring for dependents while the cost of living continues to rise.
(2) Notwithstanding Section 10231.5 of the Government Code, the Legislative Analyst’s Office shall report to the Legislature, on or before January 1, 2032, and in compliance with Section 9795 of the Government Code, the average amount of the credit claimed by a qualified taxpayer and how many taxpayers claimed the credit.
(3) (A) Notwithstanding any other law, the Franchise Tax Board shall provide all information required to complete the report required by paragraph (2) to the Legislative Analyst’s Office.
(B) The disclosure requirements of this paragraph 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. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.