SB 1148, as amended, Stone. Personal income taxes: deductions: qualified tuition.
The Personal Income Taxbegin delete Law,end deletebegin insert Lawend insert does not conform to a provision of federal income tax law that for taxable years beginning before January 1, 2015, allows a deduction from gross income for the taxable year in an amount equal to qualifying tuition and related expenses paid by the taxpayer during the taxable year, not to exceed $4,000, for enrollment or attendance by the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent at any accredited postsecondary institution. That law provides for a phaseout at certain modified adjusted gross income levels.
This bill, for taxable years beginning on or after January 1, 2016, and before
January 1, 2021, would conform to that federal law with modifications, including modifications to thebegin delete amount of the deduction and the phaseout.end deletebegin insert
termination date.end insert
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 17204.7 of the Revenue and Taxation
2Code is repealed.
Section 17204.7 is added to the Revenue and Taxation
4Code, to read:
(a) For taxable years beginning on or after January
61, 2016, and before January 1, 2021, Section 222 of the Internal
7Revenue Code, relating to qualified tuition and related expenses,
8is modified as follows:
9(1) The term “Secretary” shall be replaced by the term
10“Franchise Tax Board.”
11(2) The applicable dollar limit shall be determined as follows:
12(A) In the case of a taxpayer whose adjusted gross income for
13the taxable year does not exceed one hundred twenty-five thousand
14dollars ($125,000) or two hundred fifty thousand dollars ($250,000)
15in the case of a joint return, ten thousand dollars ($10,000) per
16
individual.
17(B) In the case of any other taxpayer, zero.
18(C) For taxable years beginning on or after January 1, 2017, the
19amounts specified in subparagraph (A) shall be recomputed
20annually in the same manner as the recomputation of income tax
21brackets under subdivision (h) of Section 17041.
24 22(3)
end delete
23begin insert(2)end insert Section 222(e) of the
Internal Revenue Code, relating to
24termination, shall not apply.
25(b) This section shall remain in effect only until December 1,
262021, and as of that date is repealed.
This act provides for a tax levy within the meaning of
28Article IV of the California Constitution and shall go into
29immediate effect.
O
97