Today's Law As Amended

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AB-153 Personal income taxes: deduction: students.(2019-2020)



SECTION 1.

 Section 17205 is added to the Revenue and Taxation Code, to read:

17205.
 (a) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 170(g) of the Internal Revenue Code, relating to amounts paid to maintain certain students as members of taxpayer’s household, is modified as follows:
(1) Section 170(g)(2)(A) of the Internal Revenue Code, relating to amount, is modified by substituting “$500” in lieu of “$50” when the student’s permanent place of residence is not the United States.
(2) Section 170(g)(2)(B) of the Internal Revenue Code, relating to compensation or reimbursement, shall not apply when the student’s permanent place of residence is not the United States.
(b) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.
SEC. 2.
 (a) It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act.
(b) With respect to Section 17205 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares as follows:
(1) The goal of this act is to relieve the tax burden on families for receiving extra income because of hosting a foreign exchange student and allow more families to participate in this program without the worry of losing their own money.
(2) The effectiveness of the revised deduction shall be measured as follows: the Franchise Tax Board shall report on its internet website the number of taxpayers who claim the revised deduction. The Legislature shall use this information to determine whether the deduction results in more families hosting foreign exchange students.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.