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SB-444 Personal income tax: exclusions from gross income.(2021-2022)



Current Version: 03/03/21 - Amended Senate         Compare Versions information image


SB444:v98#DOCUMENT

Amended  IN  Senate  March 03, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 444


Introduced by Senator Hertzberg

February 16, 2021


An act to amend add Section 17001 of 17131.13 to the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 444, as amended, Hertzberg. Personal income tax. tax: exclusions from gross income.
The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability.
Existing federal law, known as the National and Community Service State Grant Program, gives educational awards to individuals based on the individual’s participation in an approved national service position. That law also provides grants to states, subdivisions of states, and other public and private organizations to carry out national service programs, as defined, including grants to the California Volunteers program administered by the office of the Governor. California Volunteers, through the California For All Educational Award program, offers educational awards using funds granted pursuant to the National and Community Service State Grant Program.
This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2032, would exclude from gross income those educational awards received by a taxpayer based on the taxpayer’s participation in the California For All Education Award program. The bill would also exclude from gross income any educational award received by a taxpayer pursuant to the federal National and Community Service State Grant Program.
Existing law requires any bill authorizing a new tax expenditure, defined to include an exclusion from income, to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would state the intent of the Legislature to comply with the additional information requirements of any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

The Personal Income Tax Law imposes taxes on taxable income, as provided.

This bill would make nonsubstantive changes to the provision that names that law.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17131.13 is added to the Revenue and Taxation Code, to read:

17131.13.
 For taxable years beginning on or after January 1, 2021, and before January 1, 2032, gross income does not include any educational award received by a taxpayer pursuant to Section 12604 of Title 42 of the United States Code, or any educational award received by a taxpayer due to the taxpayer’s participation in the California For All Education Award program.

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.
SECTION 1.Section 17001 of the Revenue and Taxation Code is amended to read:
17001.

This part shall be known, and may be cited, as the “Personal Income Tax Law.”