AB 408

This bill creates a nonrefundable income tax credit for the costs of

transportation services paid by a person considered blind for federal income tax

purposes for certain transportation between the person's residence and place of

employment. The transportation services eligible for the credit must be provided by

mass transit, paratransit, taxicab, or a transportation network company. The credit

is equal to 50 percent of the cost of those transportation services paid during a

taxable year, and is limited to a maximum credit of $1,500 per taxable year. A

claimant may not claim a credit under the bill for amounts paid if funds from an

ABLE account under section

529A

of the Internal Revenue Code are used for the

payment and the person who deposited those funds into the ABLE account claimed

a state individual income tax subtraction for depositing the funds. Federal law

allows individuals to establish ABLE accounts, which are tax-exempt savings

accounts for paying for certain qualified expenses for a beneficiary with a disability,

and current law authorizes a state individual income tax subtraction for certain

amounts deposited into an ABLE account.