Amended in Assembly May 21, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 337

Introduced by Assembly Member Jones-Sawyer

(Coauthors: Assembly Members Brough and Chávez)

February 13, 2015

An act to add and repeal Section 17052.7 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 337, as amended, Jones-Sawyer. Personal income tax: credits: qualified teachers.

The Personal Income Tax Law allows various credits against the tax imposed by that law.

This bill would, for taxable years beginning on or after January 1, begin delete 2015, end delete begin insert 2016, end insert and before January 1, begin delete 2020, end delete begin insert 2021, end insert allow a credit against that tax for amounts paid or incurred by a qualified teacher, as defined, during the begin insert school year beginning immediately prior to the end insert taxable year for instructional materials and classroom supplies, as defined, not to exceed $250, except as provided. The bill would make related findings and declarations. begin insert The bill would require the school in which a qualified teacher works to provide a certificate certifying the hours the qualified teacher worked in a school year and the date in which the individual became a teacher. By requiring the schools to provide this certificate, the bill would impose a state-mandated local program. end insert

begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert

This bill would take effect immediately as a tax levy.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) While ensuring that a quality education for all of California’s
school children is a shared responsibility of the general public, it
is foremost the duty of individual parents and teachers.

(b) State tax relief for education expenses, leveraged with current
federal deductions, can further support and strengthen new teachers
for successful careers in their noble profession.

SEC. 2.  

Section 17052.7 is added to the Revenue and Taxation
Code, to read:

17052.7.  

(a) (1) For each taxable year beginning on or after
January 1, begin delete 2015, end delete begin insert 2016, end insert and before January 1, begin delete 2020, end delete begin insert 2021, end insert there
shall be allowed as a credit against the “net tax,” as defined in
Section 17039, an amount equal to the amount paid or incurred by
a qualified teacher during the taxable year for instructional
materials and classroom supplies, not to exceed two hundred fifty
dollars ($250), except as provided in paragraph (2).

(2) Subject to the maximum credit amount allowed per qualified
teacher, for two qualified teachers who are married to each other
and filing a joint return, the credit shall not exceed five hundred
dollars ($500).

(b) For purposes of this section:

(1) “Instructional materials and classroom supplies” means
books, supplies, computer equipment, including related begin delete software
and services end delete begin insert software, services, end insert and other equipment, and
supplementary materials used in the classroom, including, but not
limited to, supplies for courses in health and physical education,
the amount paid or incurred for which is otherwise deductible
under Section 162 of the Internal Revenue Code and not
reimbursed.

(2) “Qualified teacher” means a teacher who meets all of the
following requirements:

(A) The begin delete individual end delete begin insert teacher end insert has worked at least 900 hours in the
school year begin insert beginning immediately prior to the taxable year end insert as a
teacher, in a school offering instruction in kindergarten or any of
grades 1 to 12, inclusive, in California at a begin delete public, charter, or
private school that has a current private school affidavit on file
with the State Department of Education in a school year. end delete begin insert public
or charter school. end insert

(B) The teacher is primarily engaged in the duty of imparting
knowledge to pupils by teaching, instructing, or lecturing.

(C) The teacher customarily and regularly exercises discretion
and independent judgment in performing the duties of a teacher.

(D) The teacher begin delete is not employed as a tutor, teaching assistant,
instructional aide, student teacher, day care provider, vocational
instructor, or similar position. end delete begin insert was not employed as a qualified
teacher prior to the 2015-16 school year. end insert

begin delete

(c) The credit allowed pursuant to this section shall be available
as follows:

(1) For taxable years beginning on or after January 1, 2015, and
before January 1, 2016, the credit shall be allowed only to a
qualified teacher with no more than one year of employment as a
qualified teacher.

(2) For taxable years beginning on or after January 1, 2016, and
before January 1, 2017, the credit shall be allowed only to a
qualified teacher with no more than two consecutive years of
employment as a qualified teacher.

(3) For taxable years beginning on or after January 1, 2017, and
before January 1, 2020, the credit shall be allowed only to a
qualified teacher with no more than three consecutive years of
employment as a qualified teacher.

end delete begin insert

(E) The teacher has not been a qualified teacher for more than
three consecutive school years.

end insert begin insert

(3) “School year” means the fiscal year or the academic year.

end insert begin insert

(c) (1) The school in which the qualified teacher works shall
provide a certificate to the qualified teacher certifying that the
teacher has worked at least 900 hours during the school year.

end insert begin insert

(2) A qualified teacher shall provide a copy of the certificate to
the Franchise Tax Board upon request.

end insert

(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 four years if necessary,
until the credit is exhausted.

(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 shall not apply to
any standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board
pursuant to this section.

begin delete

(f) Section 41 shall not apply to the credit allowed pursuant to
this section.

end delete begin delete

(g)

end delete

begin insert (f) end insert  This section shall remain in effect only until December 1,
2020, and as of that date is repealed.

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

Pursuant to Section 41 of the Revenue and Taxation
Code, the specific goal of the credit allowed under Section 17052.7
of the Revenue and Taxation Code is to support qualified teachers
who are purchasing instructional materials and classroom supplies
with personal funds.

end insert begin insert

(a) The effectiveness of this credit shall be measured by the
number of qualified teachers who are allowed this credit.

end insert begin insert

(1) The State Department of Education and the Commission on
Teacher Credentialing shall report to the Legislature by January
1, 2020, the number of qualified teachers in California after the
effective date of this act.

end insert begin insert

(2) (A) The Franchise Tax Board shall report to the Legislature
by January 1, 2020, the number of taxpayers allowed this credit
in each taxable year beginning on and after January 1, 2016, and
before January 1, 2019.

end insert begin insert

(B) A report to be submitted pursuant to subparagraph (A) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert begin insert

(b) (1) The Demographics Office of the State Department of
Education reports that, in 2013-14 school year, there were 13,398
first year teachers and 16,596 second year teachers. If 10,000
qualified teachers are allowed this credit in the first taxable year,
which begins on or after January 1, 2016; 20,000 in the second
taxable year, which begins on or after January 1, 2017; and 30,000
in the third taxable year, which begins on or after January 1, 2018,
the credit will have effectively reduced the personal expenses for
instructional materials and classroom supplies incurred by new
teachers by an estimated $15 million.

end insert begin insert

(2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government
Code.

end insert begin insert

(c) The Franchise Tax Board shall measure the estimated
number of qualified teachers described in subdivision (b) against
the number of qualified teachers that are allowed this credit.

end insert begin insert

(d) This credit shall be considered successful if 50 percent or
more of the estimated number of qualified teachers are allowed
this credit.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 5. end insert   

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.