BILL NUMBER: AB 2426	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nestande

                        FEBRUARY 21, 2014

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2426, as introduced, Nestande. Income taxes: education savings
accounts.
   The Personal Income Tax Law excludes from gross income
distributions from a Coverdell Education Savings Account, provided
the distributions are used for qualified education expenses, as
provided.
   This bill would state the intent of the Legislature to increase
the benefits related to the exclusion for distributions from an
education savings accounts by allowing a deduction for contributions
to an education savings account, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation to increase the benefits of the current gross income
exclusion for individual taxpayers for distributions from a Coverdell
Education Savings Account, where the distributions are spent on
qualified educational expenses at public and private schools,
colleges, and universities that include tuition, fees, books,
supplies, equipment, and room and board, by allowing an
above-the-line deduction, not to exceed seven hundred fifty dollars
($750) per taxable year for each designated beneficiary, for
contributions made to an education savings account.