BILL NUMBER: SB 1148	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 11, 2016
	AMENDED IN SENATE  APRIL 25, 2016

INTRODUCED BY   Senator Stone

                        FEBRUARY 18, 2016

   An act to repeal and add Section 17204.7 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1148, as amended, Stone. Personal income taxes: deductions:
qualified tuition.
   The Personal Income Tax  Law,   Law 
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 the  amount of
the deduction and the phaseout.   termination date.

   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 17204.7 of the Revenue and Taxation Code is
repealed.
  SEC. 2.  Section 17204.7 is added to the Revenue and Taxation Code,
to read:
   17204.7.  (a) For taxable years beginning on or after January 1,
2016, and before January 1, 2021, Section 222 of the Internal Revenue
Code, relating to qualified tuition and related expenses, is
modified as follows:
   (1) The term "Secretary" shall be replaced by the term "Franchise
Tax Board." 
   (2) The applicable dollar limit shall be determined as follows:
 
   (A) In the case of a taxpayer whose adjusted gross income for the
taxable year does not exceed one hundred twenty-five thousand dollars
($125,000) or two hundred fifty thousand dollars ($250,000) in the
case of a joint return, ten thousand dollars ($10,000) per
individual.  
   (B) In the case of any other taxpayer, zero.  
   (C) For taxable years beginning on or after January 1, 2017, the
amounts specified in subparagraph (A) shall be recomputed annually in
the same manner as the recomputation of income tax brackets under
subdivision (h) of Section 17041.  
   (3) 
    (2)  Section 222(e) of the Internal Revenue Code,
relating to termination, shall not apply.
   (b) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the California Constitution and shall go into immediate
effect.