Bill Text: CA AB1041 | 2015-2016 | Regular Session | Introduced

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Bill Title: Personal income taxes: education savings accounts.

Spectrum: Strong Partisan Bill (Republican 12-1)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1041 Detail]

Download: California-2015-AB1041-Introduced.html

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BILL NUMBER: AB 1041	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Baker
   (Coauthors: Assembly Members Travis Allen, Bigelow, Brough,
Chávez, Gallagher, Lackey, Linder, Mayes, Obernolte, Olsen,
Patterson, and Wilk)

                        FEBRUARY 26, 2015

   An act to amend Section 17072 of, and to add Section 17208 to, the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1041, as introduced, Baker. Personal income taxes: education
savings accounts.
   The Personal Income Tax Law, in modified conformity with federal
income tax laws, allows various deductions in computing the income
that is subject to the taxes imposed by that law.
   This bill would allow a deduction in computing adjusted gross
income for those amounts contributed to a Coverdell education savings
account, up to $750 per taxable year, as provided.
   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 17072 of the Revenue and Taxation Code is
amended to read:
   17072.  (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
   (b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
   (c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.

   (d) For taxable years beginning on or after January 1, 2014,
Section 62(a) of the Internal Revenue Code is modified to provide
that the deduction allowed under Section 17208 shall be allowed in
determining adjusted gross income. 
  SEC. 2.  Section 17208 is added to the Revenue and Taxation Code,
to read:
   17208.  (a) Notwithstanding any other provision of this part or
Part 11 (commencing with Section 23001) to the contrary, a deduction
shall be allowed for an amount contributed by a taxpayer during the
taxable year to a Coverdell education savings account, not to exceed
seven hundred fifty dollars ($750) per taxable year, except as
otherwise provided in this section.
   (b) For purposes of this section, "Coverdell education savings
account" shall have the same meaning as that term is defined by
Section 530 of the Internal Revenue Code, as modified by Section
23712.
   (c) For purposes of applying Section 530 of the Internal Revenue
Code, relating to Coverdell education savings accounts, the basis of
the Coverdell education savings account shall be reduced by any
amount deducted pursuant to this section.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.