AB 755, as introduced, Ridley-Thomas. Personal income taxes: deduction: student loan interest.
The Personal Income Tax Law, in conformity with federal income tax laws, allows a deduction from gross income for the taxable year in an amount equal to the interest paid by the taxpayer, not to exceed $2,500, during the taxable year on a qualified education loan. That law provides for a phase out at certain modified adjusted gross income levels.
This bill, for taxable years beginning on or after January 1, 2016, would increase the dollar amount limit to $4,000, thereby no longer conforming to that limitation of the federal income tax law.
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 17204.6 is added to the Revenue and
2Taxation Code, to read:
For taxable years beginning on or after January 1,
42016, Section 221(b)(1) of the Internal Revenue Code is modified
P2 1by substituting the number “$4,000” for the number “$2,500”
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.