BILL NUMBER: AB 2605	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nakanishi

                        FEBRUARY 22, 2008

   An act to add Section 17053.85 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2605, as introduced, Nakanishi. Income taxes: credit: private
school and home school.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would, for each taxable year beginning on or after
January 1, 2009, authorize a credit of $500 for each dependent of a
taxpayer in grades kindergarten to 12 attending a nonpublic school.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17053.85 is added to the Revenue and Taxation
Code, to read:
   17053.85.  (a) For each taxable year beginning on or after January
1, 2009, there shall be allowed as a credit against the "net tax,"
as defined in Section 17039, an amount equal to five hundred dollars
($500) for each dependent of the taxpayer who is attending a
qualified nonpublic school.
   (b) For purposes of this section, "qualified nonpublic school"
means a private primary or secondary school, or a home school, grades
kindergarten to 12, located in this state.
   (c) No credit may be allowed by this section unless the taxpayer
is eligible to claim the child as a dependent on his or her tax
return.
   (d) 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 year, and succeeding years if necessary, until the
credit is exhausted.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.