AB 2459: Personal income taxes: credits: health insurance premiums.

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

This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2026, would allow a credit under the Personal Income Tax Law in an amount equal to the cost of health insurance premiums of the lowest cost bronze plan for the qualified individual individual, certified by the board of Covered California, or the qualified individuals dependent that exceeds 8% of the qualified individuals modified adjusted gross income, as specified. The bill would make the credit operative only for taxable years for which resources are authorized in the annual Budget Act for the Franchise Tax Board to oversee and audit returns associated with the credit. If the allowed credit amount exceeds tax liability, the bill would also allow a payment in excess of that credit amount upon appropriation by the Legislature. would, for a taxpayer with an allowable credit in excess of tax liability, allow a payment to the taxpayer in excess of that credit amount, upon appropriation by the Legislature, subject to the annual Budget Act or a bill providing for appropriations related to the Budget Act, as provided. The bill would require, on or before January 1, 2024, the Legislative Analysts Office to report on the number of qualified individuals who claimed the credit, the average and median credit amounts claimed, and the effectiveness of the credit in reducing health care costs.

This bill would take effect immediately as a tax levy.