CA SB785

Creates a 50% tax credit for unreimbursed costs of durable medical equipment (wheelchairs, ventilators, feeding pumps, home monitors) purchased for children under 18 with complex medical conditions

Limits the credit to $5,000 per qualifying dependent per taxable year

Applies to taxable years beginning January 1, 2026, through December 31, 2030, with unused credits carrying forward for up to seven years

Requires the Franchise Tax Board to report annually to the Legislature starting July 1, 2028, on the number of taxpayers claiming the credit and total dollar amount claimed

Takes effect immediately as a tax levy and automatically repeals on December 1, 2031