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AB-1441 Personal income taxes: credit: higher education.(2011-2012)

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CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill No. 1441


Introduced  by  Assembly Member Beall

January 04, 2012


An act to add and repeal Section 17053.51 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1441, as introduced, Beall. Personal income taxes: credit: higher education.
The Personal Income Tax Law authorizes various credits against the taxes imposed by that law.
This bill would, for each taxable year beginning on or after January 1, 2012, and before January 1, 2017, allow a credit of up to $500 per eligible student for qualified costs, as defined, paid or incurred by a qualified taxpayer, as defined, at a qualified educational institution, as defined, on behalf of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer. The credit allowed would be limited for all taxable years to a total of $2,000 per eligible student.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17053.51 is added to the Revenue and Taxation Code, to read:

17053.51.
 (a) For each taxable year beginning on or after January 1, 2012, and before January 1, 2017, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the qualified costs paid or incurred by the qualified taxpayer at a qualified educational institution, not to exceed five hundred dollars ($500) per eligible student for each taxable year.
(b) For purposes of this section:
(1) “Course materials” means books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the qualified educational institution as a condition of enrollment or attendance.
(2) “Eligible student” means the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer.
(3) “Qualified costs” means tuition and fees required for enrollment or attendance of an eligible student at a qualified educational institution and expenditures for course materials.
(4) “Qualified educational institution” means the University of California, the California State University, or the California Community Colleges.
(5) “Qualified taxpayer” means a taxpayer who pays or incurs qualified costs at any qualified educational institution during the taxable year and who has a modified adjusted gross income for that taxable year of at least eighty thousand one dollars ($80,001) and not more than one hundred forty thousand dollars ($140,000) for an individual or married persons filing joint returns.
(c) The credit allowed under this section for all taxable years shall not exceed an aggregate amount of two thousand dollars ($2,000) per each eligible student.
(d) This section shall remain in effect only until December 1, 2017, and as of that date is repealed.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.