SB 1102 California Senate · 2025-2026 Regular Session

Personal Income Tax Law: credit: nurses.

Summary

The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes to a licensed nurse employed at a rural health facility, as specified, for each taxable year beginning on or after January 1, 2027, and before January 1, 2032, in an amount equal to $2,000 per taxpayer per taxable year. The bill would require the Department of Health Care Access and Information to provide an annual list to the Franchise Tax Board of rural health facilities, as specified. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. This bill would take effect immediately as a tax levy.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 13, 2026 Last action May 14, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

04/23/26 - Amended Senate → SB1102 · 4 edits

MODERATE

The amended bill fills in the previously blank tax credit amount at $2,000 per nurse per year, narrows the definition of qualifying rural health facilities from a broad set including federally designated shortage areas and rural health clinics to only hospitals with a 'rural' or 'frontier' designation in the Medical Service Study Area, and changes excess credits from refundable cash payments to a six-year carryover only. These changes significantly reduce the bill's cost and scope while adding an administrative reporting requirement.

FISCAL

The tax credit amount was previously left blank (____ dollars) and is now set at $2,000 per qualified taxpayer per taxable year.

The treatment of excess credits changed from a refundable credit (paid from the Tax Relief and Refund Account as cash to the taxpayer) to a non-refundable carryover that can reduce net tax in the following year and up to five succeeding years until exhausted.

ELIGIBILITY

The definition of 'rural health facility' was narrowed. The old version included any hospital in a federally designated health professional shortage area, medically underserved area, or medically underserved population, including critical access hospitals and rural health clinics. The new version limits it to hospitals with a 'rural' or 'frontier' designation status in the Medical Service Study Area created by DHCAI or as set forth in Section 1250 of the Health and Safety Code.

REQUIREMENT

A new provision requires the Department of Health Care Access and Information to provide an annual list of qualifying rural health facilities to the Franchise Tax Board by January 15, starting in 2028 and each year thereafter.

02/13/26 - Introduced → 04/23/26 - Amended Senate · 9 edits · Apr 23, 2026

MAJOR

The Senate amendment fills in the $2,000 credit amount that was left blank in the introduced version, adds a five-year sunset (repeal on December 1, 2032), and substantially tightens eligibility by requiring full-time employment and excluding positions primarily for nursing administration. It also adds a carryover provision for unused credits and requires the Department of Health Care Access and Information to provide an annual list of qualifying rural health facilities to the Franchise Tax Board.

FISCAL

The credit amount was filled in at $2,000 per taxpayer per taxable year (was left blank in the introduced version).

TIMELINE

A sunset provision was added: the section remains in effect only until December 1, 2032, and is repealed as of that date. The credit applies to taxable years beginning on or after January 1, 2027, and before January 1, 2032.

ELIGIBILITY

Eligibility was tightened from a simple license-plus-employment test to a three-part requirement: (A) licensed as a nurse, (B) employed on a full-time basis at a rural health facility in a position requiring that license for at least six months, and (C) the position is not primarily for nursing administration.

DEFINITION

New definitions were added for 'direct patient care' (hands-on care provided directly by an individual), 'full-time basis' (minimum 1,750 hours for hourly workers or 50 weeks for salaried workers), 'nursing administration' (oversight or managerial responsibilities over nursing units or entire departments; explicitly does not include minimal or infrequent supervisory duties), and 'primarily' (51 percent or more of the position's responsibilities).

The definition of 'rural health facility' was expanded to include hospitals defined as having a 'rural' or 'frontier' designation status in the Medical Service Study Area created by the Department of Health Care Access and Information, in addition to the existing criteria.

REQUIREMENT

A carryover provision was added allowing excess credit to be carried over to reduce net tax in the following year and for five succeeding years until exhausted.

ENFORCEMENT

The Department of Health Care Access and Information is required to provide an annual list of qualifying rural health facilities to the Franchise Tax Board on or before January 15, 2028, and each January 15 thereafter.

TECHNICAL

The legislative report language added 'and to the extent feasible' as a qualifier on the data reporting requirement, and the appropriation designation changed from 'yes' to 'no.'

A new Section 2 was added explicitly stating the act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Upper · Passed

May 14 hearing: Held in committee and under submission.

upper

Apr 23, 2026

Upper · Passed

Read second time and amended. Re-referred to Com. on APPR.

upper

Apr 22, 2026

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 4015.) (April 22).

upper

Feb 26, 2026

Committee

Referred to Com. on REV. & TAX.

upper

Feb 13, 2026

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 0 co-sponsors