California Legislature—2015–16 Regular Session

Assembly BillNo. 1041

Introduced by Assembly Member Baker

(Coauthors: Assembly Members Travis Allen, Bigelow, Brough, Chávez, Gallagher, Lackey, Linder, Mayes, Obernolte, Olsen, Patterson, and Wilk)

February 26, 2015

An act to amend Section 17072 of, and to add Section 17208 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1041, as introduced, Baker. Personal income taxes: education savings accounts.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in computing the income that is subject to the taxes imposed by that law.

This bill would allow a deduction in computing adjusted gross income for those amounts contributed to a Coverdell education savings account, up to $750 per taxable year, as provided.

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 17072 of the Revenue and Taxation Code
2 is amended to read:

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17072.  

(a) Section 62 of the Internal Revenue Code, relating
2to adjusted gross income defined, shall apply, except as otherwise
3provided.

4(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating
5to certain expenses of elementary and secondary school teachers,
6shall not apply.

7(c) Section 62(a)(21) of the Internal Revenue Code, relating to
8attorneys fees relating to awards to whistleblowers, shall not apply.

begin insert

9(d) For taxable years beginning on or after January 1, 2014,
10Section 62(a) of the Internal Revenue Code is modified to provide
11that the deduction allowed under Section 17208 shall be allowed
12in determining adjusted gross income.

end insert
13

SEC. 2.  

Section 17208 is added to the Revenue and Taxation
14Code, to read:

15

17208.  

(a) Notwithstanding any other provision of this part
16or Part 11 (commencing with Section 23001) to the contrary, a
17deduction shall be allowed for an amount contributed by a taxpayer
18during the taxable year to a Coverdell education savings account,
19not to exceed seven hundred fifty dollars ($750) per taxable year,
20except as otherwise provided in this section.

21(b) For purposes of this section, “Coverdell education savings
22account” shall have the same meaning as that term is defined by
23Section 530 of the Internal Revenue Code, as modified by Section
2423712.

25(c) For purposes of applying Section 530 of the Internal Revenue
26Code, relating to Coverdell education savings accounts, the basis
27 of the Coverdell education savings account shall be reduced by
28any amount deducted pursuant to this section.

29

SEC. 3.  

This act provides for a tax levy within the meaning of
30Article IV of the Constitution and shall go into immediate effect.


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