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AB 984 would allow state tax deductions for CalABLE contributions; supporters cite savings benefits for Californians with disabilities
Summary
AB 984 would permit state income tax deductions for contributions to CalABLE accounts, a federal‑authorized savings vehicle for people with disabilities. Testimony included account holders and CalABLE staff describing how the accounts help families save while preserving public benefits; the bill was referred to the committee suspense file.
Assemblymember Nguyen (presenting AB 984) told the committee the bill would allow state income tax deductions for contributions to CalABLE savings accounts, which are used by many low‑income Californians with disabilities and are often the only practical vehicle for saving without jeopardizing eligibility for SSI or SSDI.
Thomas Martin, executive director of CalABLE, described the program and said account holders are frequently low income—71% of account holders are eligible for SSI or SSDI, according to testimony—and noted the federal ABLE rules exempt CalABLE balances from asset limits up to $100,000. Martin said people with disabilities face higher costs of living and lower employment and that tax deductibility for contributions would help families plan and save for long‑term expenses.
Charles Beckham, a CalABLE account holder who testified, described using CalABLE for assistive technology and as a means to save for long‑term care and supports for family members with disabilities.
Connie Chan, representing State Treasurer Fiona Ma (CalABLE’s sponsor), spoke in support. No opposition witnesses were recorded. Chair Gibson announced AB 984 would be referred to the committee suspense file.
