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Bill Text
Bill Information
Bill Start
|
Amended
IN
Senate
May 11, 2016 |
|
Amended
IN
Senate
April 25, 2016 |
CALIFORNIA LEGISLATURE—
2015–2016 REGULAR SESSION
| Senate Bill | No. 1148 |
| Introduced by Senator Stone |
February 18, 2016 |
An act to repeal and add Section 17204.7 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1148, as amended, Stone.
Personal income taxes: deductions: qualified tuition.
The Personal Income Tax Law, Law does not conform to a provision of federal income tax law that for taxable years beginning before January 1, 2015, allows a deduction from gross income for the taxable year in an amount equal to qualifying tuition and related expenses paid by the taxpayer during the taxable year, not to exceed $4,000, for enrollment or attendance by the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent at any accredited postsecondary institution. That law provides for a phaseout at certain modified adjusted gross income levels.
This bill, for taxable years beginning on or after January 1, 2016, and before
January 1, 2021, would conform to that federal law with modifications, including modifications to the amount of the deduction and the phaseout.
termination date.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17204.7 of the Revenue and Taxation Code is repealed.SEC. 2.
Section 17204.7 is added to the Revenue and Taxation Code, to read:17204.7.
(a) For taxable years beginning on or after January 1, 2016, and before January 1, 2021, Section 222 of the Internal Revenue Code, relating to qualified tuition and related expenses, is modified as follows:(1) The term “Secretary” shall be replaced by the term “Franchise Tax Board.”
(2)The applicable dollar limit shall be determined as follows:
(A)In the case of a taxpayer whose adjusted gross income for the taxable year does not exceed one hundred twenty-five thousand dollars ($125,000) or two hundred fifty thousand dollars ($250,000) in the case of a joint return, ten thousand dollars ($10,000) per
individual.
(B)In the case of any other taxpayer, zero.
(C)For taxable years beginning on or after January 1, 2017, the amounts specified in subparagraph (A) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041.
(3)
(2) Section 222(e) of the
Internal Revenue Code, relating to termination, shall not apply.
(b) This section shall remain in effect only until December 1, 2021, and as of that date is repealed.