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 Bill Text - AB-1431 Personal income taxes: credit: medical services: rural areas.

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 |Add To My Favorites |Track Bill | Version: 04/28/25 - Amended Assembly
 02/21/25 - Introduced

 AB-1431 Personal income taxes: credit: medical services: rural areas.(2025-2026)

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 Date Published: 04/28/2025 09:00 PM

AB1431:v98#DOCUMENTBill Start

 Amended
 IN 
 Assembly
 April 28, 2025

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Assembly Bill

No. 1431

Introduced by Assembly Member Tangipa

February 21, 2025

 An act to add and repeal Section 17058.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. 

LEGISLATIVE COUNSEL'S DIGEST

AB 1431, as amended, Tangipa.
 Personal income taxes: credit: medical services: rural areas.

The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill, for taxable years beginning on or after January 1, 2025, 2026, and before January 1, 2032, 2031, would allow a credit against the taxes imposed by that law to a qualified taxpayer in an amount equal to the qualified income earned by the qualified taxpayer for medical services
 services, as defined, performed in a rural area in the state, not to exceed $5,000 per taxable year, as specified.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

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

This bill would take effect immediately as a tax levy.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

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

SECTION 1.

 Section 17058.5 is added to the Revenue and Taxation Code, to read:

17058.5.

 (a) For each taxable year beginning on or after January 1, 2025, 2026, and before January 1, 2032, 2031, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the taxpayer’s qualified income, not to exceed five thousand dollars ($5,000) per taxable year.

(b) For purposes of this section, the following definitions apply:

(1) (A) “Medical services” means the diagnosis, treatment, and prevention of illness, injury, or other physical or mental conditions performed by a qualified taxpayer who is physically present while providing those services. “Medical services” includes, but is not limited to, doctor visits, hospital care, surgeries, mental health therapy, and rehabilitative treatments.

(B) “Medical services” does not include either of the following: 

(i) Elective cosmetic procedures.

(ii) Telehealth services.

(1)

(2) “Qualified income” means moneys paid by an employer monetary compensation paid to a qualified taxpayer for medical services performed in a rural area in the state by the qualified taxpayer and authorized under the qualified
 taxpayer’s license.

(2)

(3) “Qualified taxpayer” means an individual licensed in the state as any of the following:

(A) A dental hygienist licensed pursuant to Article 9 (commencing with Section 1900) of Chapter 4 of Division 2 of the Business and Professions Code.

(B) A certified nurse-midwife licensed pursuant to Article 2.5 (commencing with Section 2746) of Chapter 6 of Division 2 of the Business and Professions Code.

(C) A chiropractor licensed pursuant to
 Chapter 2 (commencing with Section 1000) of Division 2 of the Business and Professions Code.

(D) A dentist, including a dentist that performs oral and maxillofacial surgery, licensed pursuant to Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code.

(E) A doctor of podiatric medicine licensed pursuant to Article 22 (commencing with Section 2460) of Chapter 5 of Division 2 of the Business and Professions Code.

(F) An optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code.

(G) An osteopathic physician and surgeon licensed pursuant to Article
 4.5 (commencing with Section 2099.5) of Chapter 5 of Division 2 of the Business and Professions Code.

(H) A physical therapist licensed pursuant to Chapter 5.7 (commencing with Section 2600) of Division 2 of the B