Amended in Assembly May 15, 2014

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 begin insert and repeal end insert Section 17053.51 begin delete to end delete begin insert of end insert 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, begin delete 2014 end delete begin insert 2015 end insert , and before January 1, begin delete 2018 end delete begin insert 2020 end insert , allow a credit in an amount equal to begin delete 50% end delete begin insert 15% end insert of the tuition paid or incurred during the taxable year by a taxpayer for education and training obtained by the taxpayer or a dependent of the taxpayer at a vocational institution, as defined begin insert , not to exceed $2,500 per taxable year 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 1.  

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

17053.51.  

(a) For begin insert each end insert taxable begin delete years end delete begin insert year end insert beginning on or
after January 1, begin delete 2014, end delete begin insert 2015, and before January 1, 2020, end insert there
shall be allowed as a credit against the “net tax,” as defined in
Section 17039, an amount equal to begin delete 50 end delete begin insert 15 end insert percent of the tuition
paid or incurred begin delete by a taxpayer end delete during the taxable year begin insert by a taxpayer end insert
for education and training obtained by the taxpayer or a dependent
of the taxpayer at a vocational begin delete institution for job training and career
advancement studies end delete begin insert institution, not to exceed two thousand five
hundred dollars ($2,500) per taxable year end insert .

(b) For purposes of this section, “vocational institution” means
a private postsecondary institution that grants only certificates or
associate begin delete degrees and 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 end delete begin insert degrees end insert .

(c) In the case where the credit allowed by this section exceeds
the begin delete “net tax” end delete begin insert “net tax,” end insert 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.

begin insert

(d) (1) This credit shall not be allowed to a taxpayer who
deducts the tuition paid or incurred by the taxpayer during the
taxable year for education and training obtained by the taxpayer
at a vocational institution as an ordinary and necessary business
expense pursuant to Section 17201.

end insert begin insert

(2) This credit shall not be allowed to a taxpayer who pays for
the tuition at a vocational institution with distributions from the
taxpayer’s Golden State Scholarshare College Savings Account.

end insert begin insert

(e) This section shall be repealed on December 1, 2020.

end insert

SEC. 2.  

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