BILL NUMBER: AB 17	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY   Assembly Member Bonilla

                        DECEMBER 1, 2014

   An act to add and repeal Section 17053 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 17, as amended, Bonilla. Personal income  tax:
  taxes:  credit: qualified tuition program.
   The Personal Income Tax Law  and the Corporation Tax Law
allow   allows  various credits against the taxes
imposed by  those laws.   that law. 
   This bill would, for taxable years beginning on or after January
1, 2016, and before January 1, 2021, allow a credit  under the
Personal Income Tax Law  in  the   an 
amount  of   equal to  20% of the monetary
contributions made to  a   one or more 
qualified tuition  program  programs  , as
defined, by a qualified taxpayer, as defined,  during the taxable
year,  not to exceed $500. This bill would provide  for
the payment of a credit amount in excess of tax liability upon an
appropriation by the Legislature for that purpose.  
that the credit amount in excess of tax liability is refundable in
those years in which an appropriation for that purpose is made by the
Legislature. 
   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 is added to the Revenue and Taxation
Code, to read:
   17053.  (a) (1) For  taxable years   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  a qualified tuition program that the
qualified taxpayer owns   one or more qualified tuition
programs  during the taxable year.
   (B) Five hundred dollars ($500).
   (b) For the purposes of this section:
   (1) "Nonqualified withdrawal" means any payment or distribution
from a qualified tuition program that is subject to additional tax
pursuant to Section 529(c)(6) of the Internal Revenue Code, relating
to additional tax.
   (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 annual adjusted gross incomes: 
   (A) If the qualified taxpayer's filing status is single, married
filing separately, or domestic registered partner filing separately,
one hundred thousand dollars ($100,000) or less.  
   (B) If the qualified taxpayer files as a head of household,
surviving spouse, as defined in Section 17046, married filing
jointly, or domestic partner filing jointly, two hundred thousand
dollars ($200,000) or less.  
   (A) In the case of a single individual or married individual
filing a separate return, one hundred thousand dollars ($100,000) 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,
two hundred thousand dollars ($200,000) or less. 
   (3) "Qualified tuition program" means a qualified tuition program,
as defined in Section 529 of the Internal Revenue Code. 
   (c) In the case of married taxpayers or registered domestic
partners who file separate returns, the credit may be taken by either
spouse or registered domestic partner or divided equally between the
spouses or registered domestic partners.  
   (d) 
    (c)  When a qualified taxpayer receives a nonqualified
withdrawal, in addition to any tax imposed under this part, an
additional tax shall be imposed in an amount that is the lesser of 10
percent of that nonqualified withdrawal or the total amount of
credit allowed under subdivision (a) for the taxable year and all
prior taxable years in which the qualified taxpayer was allowed a
credit pursuant to this section. 
   (e) 
    (d)  That portion of any credit allowed under this
section that is in excess of tax liability shall  be credited
against other amounts due, if any, and the balance, if any  ,
upon an appropriation by the Legislature, be  paid 
 refunded  to the qualified taxpayer. 
   (f) 
    (e)  (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. 
   (g)
    (f)  This section shall remain in effect only until
December 1, 2021, and as of that date is repealed.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.