Today's Law As Amended


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AB-1304 Public social services: CalKIDS: personal income taxes: exclusion.(2017-2018)



As Amends the Law Today


SECTION 1.

 Section 17140.2 is added to the Revenue and Taxation Code, to read:

17140.2.
 For taxable years beginning on or after January 1, 2018, gross income does not include moneys deposited into a CalKIDS savings account established pursuant to Division 27 (commencing with Section 27000) of the Welfare and Institutions Code.

SEC. 2.

 Division 27 (commencing with Section 27000) is added to the Welfare and Institutions Code, to read:

DIVISION 27. CalKIDS Savings Accounts

27000.
 (a) There is hereby created an instrumentality of the State of California to be known as the CalKIDS Savings Trust, which is administered by the State Department of Social Services.
(b) There is established within the CalKIDS Savings Trust Fund, which is hereby created in the State Treasury, savings accounts for each beneficiary.
(c) The moneys deposited into each CalKIDS savings account shall be used to encourage and earmark savings for the costs of child care. Eligible child care costs include, but are not limited to, all of the following:
(1) The costs of before and after school care.
(2) The costs of attendance at a preschool or nursery school.
(3) The costs of attendance at an extended day program.
(4) The actual amounts paid or incurred to an au pair service or nanny service for actual care of the dependent.
(5) The costs of a babysitter for care of a dependent in or out of the dependent’s home.
(6) The costs of attendance at a summer day camp for a dependent under 13 years of age.
(d) The moneys deposited into CalKIDS savings accounts are excluded from gross income pursuant to Section 17140.2 of the Revenue and Taxation Code.