Today's Law As Amended


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SB-1125 Personal income tax: credit: virtual learning costs: dependent of the taxpayer.(2023-2024)



As Amends the Law Today


SECTION 1.

 Section 17055.1 is added to the Revenue and Taxation Code, to read:

17055.1.
 (a) For each taxable year beginning on or after January 1, 2026, and before January 1, 2030, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified costs related to virtual learning for a qualified dependent. The credit shall not exceed two thousand five hundred dollars ($2,500) per qualified dependent per taxable year.
(b) For purposes of this section, all of the following shall apply:
(1) “Qualified costs” means costs directly related to the virtual learning for a qualified dependent, including all of the following:
(A) Tutoring services.
(B) Special needs services.
(C) Books and supplies.
(D) Computer equipment, including related software, internet services, and other equipment.
(2) “Qualified dependent” means a dependent of the qualified taxpayer who is an elementary school, secondary school, or community college student.
(3) “Qualified taxpayer” means an individual whose adjusted gross income is either of the following:
(A) In the case of spouses filing a joint return, heads of household, and surviving spouses, as defined in Section 17046, one hundred fifty thousand dollars ($150,000) or less for that taxable year.
(B) For all other individuals, seventy-five thousand dollars ($75,000) or less for that taxable year.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding six years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
SEC. 2.
 It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
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.