Personal income taxes: exemption credit: dependents.

The Personal Income Tax law authorizes an exemption credit of $227 for each dependent of a taxpayer for each taxable year beginning on or after January 1, 1999, adjusted for inflation, which may be reduced if a taxpayer's federal adjusted gross income exceeds a threshold amount. The credit amount for the 2025 taxable year is $475.

This bill would increase that credit to $700 for taxable years beginning on or after January 1, 2026, and before January 1, 2031, and would require that the Franchise Tax Board adjust that amount for inflation for taxable years beginning on or after January 1, 2027, as prescribed.

This bill would take effect immediately as a tax levy.