California Legislature—2015–16 Regular Session

Assembly BillNo. 894


Introduced by Assembly Member Patterson

(Principal coauthor: Senator Vidak)

February 26, 2015


An act to add Section 17053.51 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 894, as introduced, Patterson. Personal income taxes: credit: education expenses.

The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new personal income tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided.

This bill would, for taxable years beginning on or after January 1, 2016, allow a credit in an amount equal to 15% of the tuition paid or incurred during the taxable year by a taxpayer for education and training obtained by the taxpayer or a dependent of the taxpayer at a vocational institution, as defined, not to exceed $2,500 per taxable year. The bill would also include that additional information required for any bill authorizing a new personal income tax credit.

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:

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SECTION 1.  

Section 17053.51 is added to the Revenue and
2Taxation Code
, to read:

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17053.51.  

(a) For each taxable year beginning on or after
4January 1, 2016, there shall be allowed as a credit against the “net
5tax,” as defined in Section 17039, an amount equal to 15 percent
6of the tuition paid or incurred during the taxable year by a taxpayer
7for education and training obtained by the taxpayer or a dependent
8of the taxpayer at a vocational institution, not to exceed two
9thousand five hundred dollars ($2,500) per taxable year.

10(b) For purposes of this section, “vocational institution” means
11a private postsecondary institution that grants only certificates or
12associate degrees.

13(c) In the case where the credit allowed by this section exceeds
14the “net tax,” the excess may be carried over to reduce the “net
15tax” in the following year, and succeeding seven years if necessary,
16until the credit is exhausted.

17(d) (1) This credit shall not be allowed to a taxpayer who
18deducts the tuition paid or incurred by the taxpayer during the
19taxable year for education and training obtained by the taxpayer
20at a vocational institution as an ordinary and necessary business
21expense pursuant to Section 17201.

22(2) This credit shall not be allowed to a taxpayer who pays for
23the tuition at a vocational institution with distributions from the
24taxpayer’s Golden State Scholarshare College Savings Account.

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SEC. 2.  

For purposes of complying with Section 41 of the
26Revenue and Taxation Code, the Legislature finds and declares as
27follows:

28(a) Specific goals, purposes, and objectives:

29(1) Increase attendance at vocational institutions.

30(2) Increase graduation and job placement rates from these
31institutions.

32(3) Increase the amount of job seekers who are qualified for
33jobs in our current job market in in-demand fields, such as
34healthcare, information technology, and STEM fields.

35(b) Performance indicators:

36(1) Attendance statistics.

37(2) Graduation and job placement rates.

P3    1(3) Unemployment rate (regarding job seekers who are able to
2find a job in a fast-growing field).

3(4) The success that companies in these high-demand fields
4have in finding candidates in California who fit their needs.

5(c) Data collection requirements and baseline measurements:

6(1) The baseline measurements include:

7(A) The current number of students in postsecondary vocational
8education programs.

9(B) The current graduation rates and placement rates in the
10graduate’s field of concentration.

11(C) Information from companies in the fast-growing career
12fields that these programs offer certificates or classes for, such as,
13but not limited to, vocational nurses, pharmacy technicians, and
14data analysts.

15(2) Data to collect includes:

16(A) The number of students in these programs after the tax credit
17is put into place.

18(B) How many students across the state took advantage of this
19tax credit.

20(C) How many of them obtained a job in their field of study.

21(D) Data from employers in the fast-growing career areas
22regarding whether the pool of candidates seeking a job at their
23companies are more sufficiently qualified for these positions as a
24result of this tax credit.

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SEC. 3.  

This act provides for a tax levy within the meaning
26of Article IV of the Constitution and shall go into immediate effect.



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