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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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  APRIL 1, 2014

INTRODUCED BY   Assembly Member Bonilla
    (   Coauthors:   Assembly Members 
 Buchanan,   Maienschein,   Nestande, 
 Patterson,   Rodriguez,   and Ting  
) 

                        FEBRUARY 19, 2014

   An act to add Section 17053 to 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 plan.   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,  allow a  refundable  credit
in the amount of 20% of the monetary contributions made to a
qualified tuition  plan account   program 
, as defined, by a qualified taxpayer, as defined, not to exceed
$500  per return  . This bill would provide for the
payment of credit amount in excess of tax liability upon on
appropriation 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,  2014   2015  ,
there shall be allowed  to a qualified taxpayer  a credit
 , refundable as provided in subdivision (f), 
against the "net tax," as defined in Section 17039, in  the
amount of 20 percent of the monetary contributions made by a
qualified taxpayer to a qualified tuition plan account that the
qualified taxpayer owns during the taxable year, not to exceed five
hundred dollars ($500) per return.   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  a withdrawal of funds
from a qualified tuition plan account for purposes that are not
qualified higher education expenses, as defined in Section 529 of the
Internal Revenue Code   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  plan
account   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  plan"  program 
 "  means a qualified tuition program, as defined in Section
529 of the Internal Revenue  Code, and established pursuant
to the Golden State Scholarshare Trust Act (Article 19 (commencing
with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3
of the Education Code)   Code  . 
   (4) "Qualified tuition plan account" means an account described in
Section 529(b)(1)(A)(ii) 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) The credit shall be recaptured in the amount of 10 percent of
any nonqualified withdrawals for a qualified tuition plan account for
which the credit has been claimed, up to a maximum of the total
credits received under this section.  
   (e) The Scholarshare Investment Board shall verify the amount of
the contribution made and the name of the accountholder for the
Franchise Tax Board.  
   (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.  
   (f) 
    (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. 
   (g) 
    (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.
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.