Amended in Assembly April 24, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2519

Introduced by Assembly Member Patterson

(Coauthors: Assembly Members Chávez and Harkey)

(Coauthors: Senators Vidak and Wright)

February 21, 2014

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

LEGISLATIVE COUNSEL’S DIGEST

AB 2519, as amended, Patterson. Personal income taxes: credit: education expenses.

The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill would, for taxable years beginning on or after January 1, 2014, and before January 1, 2018, allow a credit in an amount equal to 50% of the tuition paid or incurred during the taxable year by a begin delete California resident end delete taxpayer for education and training obtained begin insert by the taxpayer or a dependent of the taxpayer end insert at a vocational institution, as defined.

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

17053.51.  

(a) For taxable years beginning on or after January
1, 2014, there shall be allowed as a credit against the “net tax,” as
defined in Section 17039, an amount equal to 50 percent of the
tuition paid or incurred by a taxpayer during the taxable year for
education and training obtained begin insert by the taxpayer or a dependent of
the taxpayer end insert at a vocational institution for job training and career
advancement studies.

(b) For purposes of this section, “vocational institution” means
begin delete an end delete begin insert a private postsecondary end insert institution begin delete of higher education end delete begin insert that
grants only certificates or associate degrees and end insert in which students
are taught job-specific skills in a variety of fields, including, but
not limited to, the fields of pharmacy technician or automotive
technician.

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

SEC. 2.  

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