Rev. & Tax. Code, § 17054.1 · Chapter 2. Imposition of Tax
Rev. & Tax. Code, § 17054.1
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) (1) In the case of any taxpayer whose federal adjusted gross income for the taxable year exceeds the threshold amount, each credit to which this section applies shall be reduced by six dollars ($6) for each two thousand five hundred dollars ($2,500), or fraction thereof, by which the taxpayer’s federal adjusted gross income exceeds the threshold amount.
(2) In the case of credit allowed by subdivision (b) of Section 17054 (relating to joint returns and surviving spouses), the “six dollars ($6)” referred to in paragraph (1) shall be applied by substituting “twelve dollars ($12).”
(3) In the case of a married individual filing a separate return, the “two thousand five hundred dollars ($2,500)” referred to in paragraph (1) shall be applied by substituting “one thousand two hundred fifty dollars ($1,250).”
(4) Under no circumstances shall any credit reduced by paragraph (1) be reduced below zero.
(b) For purposes of this section, “threshold amount” means the following:
(1) Two hundred thousand dollars ($200,000) in the case of a joint return or a surviving spouse, as defined by Section 17046.
(2) One hundred fifty thousand dollars ($150,000) in the case of a head of a household, as defined by Section 17042.
(3) One hundred thousand dollars ($100,000) in the case of an individual who is not married and who is not a surviving spouse or head of a household.
(4) One hundred thousand dollars ($100,000) in the case of a married individual filing a separate return.
(c) This section shall apply to the following credits:
(1) Each of the credits allowed by Section 17054.
(2) The credit allowed by Section 17054.6.
(d) In the case of a taxpayer filing a nonresident or part-year resident return, the reduction of exemption credits, as provided by this section, shall be applicable prior to proration of those credits as provided by Section 17055.
(e) For purposes of this section, marital status shall be determined under Section 17021.5.
(f) For taxable years beginning on or after January 1, 1992, the threshold amounts specified in subdivision (b) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041.
(g) This section shall apply to taxable years beginning on or after January 1, 1991.
Notes and commentary — not statutory text
History
Amended by Stats. 1991, Ch. 474, Sec. 7. Effective October 2, 1991.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17054.1.
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