California Code, Revenue and Taxation Code - RTC § 17215

(a) Section 220(a) of the Internal Revenue Code,  1 relating to deduction allowed, is modified to provide that the amount allowed as a deduction shall be an amount equal to the amount allowed to that individual as a deduction under Section 220 of the Internal Revenue Code, relating to medical savings accounts, on the federal income tax return filed for the same taxable year by that individual.

(b) Section 220(f)(4) of the Internal Revenue Code, relating to additional tax on distributions not used for qualified medical expenses, is modified by substituting “12.5 percent” in lieu of “20 percent.”

(c) The amendments made to this section by the act  2 adding this subdivision shall apply to disbursements made during taxable years beginning on or after January 1, 2016.