BILL NUMBER: AB 755	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ridley-Thomas

                        FEBRUARY 25, 2015

   An act to add Section 17204.6 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17204.6 is added to the Revenue and Taxation
Code, to read:
   17204.6.  For taxable years beginning on or after January 1, 2016,
Section 221(b)(1) of the Internal Revenue Code is modified by
substituting the number "$4,000" for the number "$2,500" therein.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.