Bill Text: CA AB1956 | 2013-2014 | Regular Session | Amended

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

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-05-23 - In committee: Set, second hearing. Held under submission. [AB1956 Detail]

Download: California-2013-AB1956-Amended.html

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BILL NUMBER: AB 1956	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 15, 2014
	AMENDED IN ASSEMBLY  APRIL 1, 2014

INTRODUCED BY   Assembly Member Bonilla
    (   Principal coauthor:   Assembly Member
  V. Manuel Pérez   ) 
   (Coauthors: Assembly Members Buchanan, Maienschein, Nestande, 
Olsen,  Patterson, Rodriguez,  and Ting  
Ting,   Waldron,   and Wieckowski  )
    (   Coauthors:   Senators  
Cannella   and Vidak   ) 

                        FEBRUARY 19, 2014

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1956, as amended, Bonilla. Personal income tax: credit:
qualified tuition program.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would, for taxable years beginning on or after January
1, 2015,  and before January 1, 2020,  allow a credit in the
amount of 20% of the monetary contributions made to a qualified
tuition program, as defined, by a qualified taxpayer, as defined, not
to exceed $500. This bill would provide for the payment of  a
 credit amount in excess of tax liability upon  on
  an  appropriation  by the Legislature 
for that purpose.
   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 taxable years beginning on or after January 1,
2015, and before January 1, 2020,  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 a qualified tuition program that the qualified
taxpayer owns during the taxable year.
   (B) Five hundred dollars ($500).
   (b) For the purposes of this section:
   (1) "Nonqualified withdrawal" means any 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) If the qualified taxpayer's filing status is single, married
filing separately, or domestic registered partner filing separately,
one hundred thousand dollars ($100,000) or less.
   (B) If the qualified taxpayer files as a head of household,
surviving spouse, as defined in Section 17046, married filing
jointly, or domestic partner filing jointly, two hundred thousand
dollars ($200,000) or less.
   (3) "Qualified tuition program" means a qualified tuition program,
as defined in Section 529 of the Internal Revenue Code.
   (c) In the case of married taxpayers or registered domestic
partners who file separate returns, the credit may be taken by either
spouse or registered domestic partner or divided equally between the
spouses or registered domestic partners.
   (d) 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.
   (e) That portion of any credit allowed under this section that is
in excess of tax liability shall, upon an appropriation by the
Legislature, be paid to the qualified taxpayer.
   (f) (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. 
   (g) This section shall remain in effect only until December 1,
2020, and as of that date is repealed. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.