Bill Text: CA AB1371 | 2015-2016 | Regular Session | Amended
Bill Title: Personal income taxes: deduction: education expenses.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1371 Detail]
Download: California-2015-AB1371-Amended.html
BILL NUMBER: AB 1371 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2015
INTRODUCED BY Assembly Member Lackey
(Principal coauthor: Assembly Member Olsen)
FEBRUARY 27, 2015
An act to amend Section 17072 of, and to add and repeal Section
17052.5 of, the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1371, as amended, Lackey. Personal income taxes: deduction:
education expenses.
The Personal Income Tax Law allows various deductions in computing
income that is subject to tax under that law.
This bill, for taxable years on or after January 1, 2016, and
before January 1, 2021, would allow a deduction from adjusted
gross income, not to exceed $2,500, for the cost of
education-related expenses of the taxpayer's dependent child or
children attending public or private school, as specified.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) While ensuring the quality education of all of California's
school children schoolchildren is a
shared responsibility of the general public, it is foremost the duty
of individual parents and teachers.
(b) Providing tax relief for citizens who shoulder an extra weight
in pursuit of the common good has long been considered sound public
policy.
(c) Every school year, kindergarten and grades 1 to 12, inclusive,
parents across California pay at their own expense to obtain vital
educational resources and services that are essential to those
children entrusted to their parents' care.
(d) State education tax relief can help empower and engage low-
and middle-income families in personally caring for their own
school children's schoolchildren's
learning needs, which they know most intimately.
SEC. 2. Section 17052.5 is added to the Revenue and Taxation Code,
to read:
17052.5. (a) For each taxable year beginning on or after January
1, 2016, and before January 1, 2021, there shall be allowed as a
deduction an amount equal to the qualified amount that was paid or
incurred for qualified education-related expenses for one or more
dependent children by a qualified taxpayer during the taxable year.
(b) For purposes of this section:
(1) "Dependent children" means one or more children who
attend meet all of the following
requirements:
(A) Attend kindergarten or any of
grades 1 to 12, inclusive, in California at a public, charter, or
private school that has a current private school affidavit on file
with the State Department of Education in the taxable year
and who meet year.
(B) Are deemed a full-time pupil in accordance with the compulsory
education requirements of Sections 48200 and 48222 of the Education
Code, if applicable.
(C) Are under 21 years of age at the end of the school year.
(D) Meet the requirements of
Section 152(c)(1)(D) and (E) of the Internal Revenue Code.
(E) Are claimed as the dependent children on the original, timely
filed return of the qualified taxpayer.
(2) "Qualified amount" means the amount paid or incurred for
qualified education-related expenses, not to exceed the amount
specified in subdivision (c).
(3) (A) "Qualified education-related expenses" means the
kindergarten or any of grades 1 to 12, inclusive, costs of: textbooks
and school supplies, including, but not limited to, pens, paper,
pencils, notebooks, calculators, and rulers; the rental or purchase
of educational equipment required for classes during the regular
schoolday; school uniforms that are not part of a cocurricular
activity; computers, computer hardware, and educational computer
software used to learn academic subjects; fees for college courses at
public institutions or independent nonprofit colleges, or for summer
school courses that satisfy high school graduation requirements;
psychoeducational diagnostic evaluations to assess the cognitive and
academic abilities of pupils; dependent
children; special education and related services for
pupils dependent children who have an
individualized education program or its equivalent; out-of-school
enrichment programs, tutoring, and summer programs that are academic
in nature; and public transportation or third-party transportation
expenses for traveling directly to and from school.
(B) "Qualified education-related expenses" shall not include any
expenses for the items described in subparagraph (A) that also are
used in a trade or business.
(4) "Qualified taxpayer" means a parent or legal guardian of
a full-time pupil who is under 21 years of age at the close
of the school year one or more dependent children
who meets both meet all of the
following requirements:
(A) Both the pupil dependent children
and the parent or guardian reside in California when the
qualified education-related expenses are paid or incurred.
(B) (i) The household income does not exceed 250 percent of the
federal Income Eligibility Guidelines published by the Food and
Nutrition Service of the United States Department of Agriculture for
use in determining eligibility for reduced price meals.
(ii) Household income "Household income"
means adjusted gross income as defined in Section
61 62 of the Internal Revenue Code.
(c) The total deduction allowed under this section to a qualified
taxpayer shall not exceed two thousand five hundred dollars ($2,500)
in a taxable year. If more than one qualified taxpayer may be allowed
this deduction for a dependent child,
children, including a qualified taxpayer filing a
joint return, the sum of all deductions allowed under this
section for that those dependent
child children shall not exceed two
thousand five hundred dollars ($2,500) in a taxable year.
(d) (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
(e) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.
SEC. 3. Section 17072 of the Revenue and Taxation Code is amended
to read:
17072. (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.
(d) Section 62(a) of the Internal Revenue Code is modified to
provide that the deduction under Section 17052.5 shall be allowed in
determining adjusted gross income.
SEC. 4. It is the intent of the Legislature to make the findings
required by Section 41 of the Revenue and Taxation Code.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
