Today's Law As Amended


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SB-1218 Personal income taxes: deduction: 529 college savings plans: contributions. (2017-2018)



As Amends the Law Today


SECTION 1.

 Section 17206.2 is added to the Revenue and Taxation Code, to read:

17206.2.
 (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).
(b) For purposes of this section, “qualified taxpayer” means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.
(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.
(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed the following amounts:
(A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000).
(B) For a single individual or a spouse filing separately, three thousand dollars ($3,000).
(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.