Bill Text: CA AB17 | 2015-2016 | Regular Session | Amended

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Bill Title: Personal income taxes: credit: qualified tuition program.

Spectrum: Bipartisan Bill

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB17 Detail]

Download: California-2015-AB17-Amended.html

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BILL NUMBER: AB 17	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 21, 2015
	AMENDED IN ASSEMBLY  MAY 7, 2015
	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY   Assembly Member Bonilla
   (Coauthors: Assembly Members Baker, Calderon, Chávez, Dababneh,
Dodd, Cristina Garcia, Lackey, Maienschein, Salas, Steinorth, and
Waldron)
   (Coauthors: Senators Allen and Vidak)

                        DECEMBER 1, 2014

   An act to add and repeal Section 17053 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 17, as amended, Bonilla. Personal income taxes: credit:
qualified tuition program.
   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, 2016, and before January 1, 2021, allow a credit under the
Personal Income Tax Law in an amount equal to 20% of the monetary
contributions made to one or more qualified tuition programs, as
defined, by a qualified taxpayer, as defined, during the taxable
year, not to exceed $500. This bill would  include findings and
declarations regarding the intent of the Legislature to enact
legislation to  provide that the credit amount in excess of tax
liability is refundable in those years in which an appropriation for
that purpose is made by the Legislature.
   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 is added to the Revenue and Taxation
Code, to read:
   17053.  (a) (1) For each taxable year beginning on or after
January 1, 2016, and before January 1, 2021, there shall be allowed
to a qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount as determined by paragraph (2).
   (2) The credit amount allowed pursuant to this section shall be
the lesser of the following:
   (A) Twenty percent of the monetary contributions made by a
qualified taxpayer to one or more qualified tuition programs during
the taxable year.
   (B) Five hundred dollars ($500).
   (b) For the purposes of this section:
   (1) "Nonqualified withdrawal" means a payment or distribution from
a qualified tuition program that is subject to additional tax
pursuant to Section 529(c)(6) of the Internal Revenue Code, relating
to additional tax.
   (2) "Qualified taxpayer" means an individual who, on behalf of a
beneficiary, contributes money to a qualified tuition program for
which the individual is the account owner and has one of the
following annual adjusted gross incomes:
   (A) In the case of a single individual or married individual
filing a separate return,  one hundred thousand dollars
($100,000)   seventy-five thousand dollars ($75,000)
 or less.
   (B) In the case of a head of household or surviving spouse, as
defined in Section 17046, or a married couple filing a joint return,
 two hundred thousand dollars ($200,000)   one
hundred fifty thousand dollars ($150,000)  or less.
   (3) "Qualified tuition program" means a qualified tuition program,
as defined in Section 529 of the Internal Revenue Code.
   (c) When a qualified taxpayer receives a nonqualified withdrawal,
in addition to any tax imposed under this part, an additional tax
shall be imposed in an amount that is the lesser of 10 percent of
that nonqualified withdrawal or the total amount of credit allowed
under subdivision (a) for the taxable year and all prior taxable
years in which the qualified taxpayer was allowed a credit pursuant
to this section. 
   (d) That portion of any credit allowed under this section that is
in excess of tax liability shall be credited against other amounts
due, if any, and the balance, if any, upon an appropriation by the
Legislature, be refunded to the qualified taxpayer. 

   (e) 
    (d)  (1) The Franchise Tax Board may prescribe rules,
guidelines, or procedures necessary or appropriate to carry out the
purposes of this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section. 
   (f) 
    (e)  This section shall remain in effect only until
December 1, 2021, and as of that date is repealed.
   SEC. 2.    The Legislature finds and declares that it
is the intent of the Legislature to enact legislation to credit any
portion of the credit allowed under Section 17053 of the Revenue and
Taxation Code that is in excess of taxpayers' liability against other
amounts due, if any, and provide that the balance, if any, be
refunded to taxpayers, upon appropriation by the Legislature. 
   SEC. 2.   SEC. 3.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.