17053.
(a) (1) For each taxable year beginning on or after January 1, 2016, and before January 1, 2021, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount as determined by paragraph (2).(2) The credit amount allowed pursuant to this section shall be the lesser of the following:
(A) Twenty percent of the monetary contributions made by a qualified taxpayer to one or more accounts established pursuant to a qualified tuition program during the taxable year.
(B) Five hundred dollars ($500).
(b) For the purposes of this section:
(1) “Qualified higher education expenses” means qualified higher education expenses, as defined in Section 529(e)(3) of the Internal Revenue Code.
(2) “Qualified taxpayer” means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program for which the individual is the account owner and has one of the following California adjusted gross incomes:
(A) In the case of a single individual or married individual filing a separate return, seventy-five thousand dollars ($75,000) or less.
(B) In the case of a head of household or surviving spouse, as defined in Section 17046, or a married couple filing a joint return, one hundred
fifty thousand dollars ($150,000) or less.
(3) “Qualified tuition program” means a qualified tuition program, as defined in Section 529(b) of the Internal Revenue Code and as established pursuant to Article 19 (commencing with Section 69989) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
(c) In the case of any distribution in excess of qualified higher education expenses, the aggregate amount of credit allowed under subdivision (a) that reduced tax in any taxable year shall be added to the tax of the qualified taxpayer in the taxable year of such distribution to the extent that such distribution is attributable to the aggregate amount of contributions for which a credit is allowed under this section in taxable years beginning on or after January 1, 2016, and before January 1, 2021.
(d) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
(e) This section shall remain in effect only until December 1, 2021, and as of that date is repealed.