Bill Text: CA AB2312 | 2023-2024 | Regular Session | Amended
Bill Title: Personal income taxes: deduction: qualified education loans.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-05-16 - In committee: Held under submission. [AB2312 Detail]
Download: California-2023-AB2312-Amended.html
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Amended
IN
Assembly
May 07, 2024 |
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Amended
IN
Assembly
March 18, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2312
| Introduced by Assembly Member Wallis |
February 12, 2024 |
An act to add and repeal Section 17201.8 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2312, as amended, Wallis.
Personal income taxes: deduction: qualified education loans.
(1) The Personal Income Tax Law allows, by way of conformity with deductions allowed under federal income tax law, various deductions in computing the income that is subject to the taxes imposed by the Personal Income Tax Law, including a deduction against gross income for interest paid on qualified education loans not to exceed a specified limit. $2,500, reduced, as specified, based on modified adjusted gross income, as defined.
This bill, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, would remove the limit
increase the limitation on the deduction described above, as specified. above to $5,000.
(2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
(3) This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17201.8 is added to the Revenue and Taxation Code, to read:17201.8.
(a) For taxable years beginning(b)For purposes of this section, all references to “qualified higher education expenses” in Section 221 of the Internal Revenue Code shall be replaced with “higher education expenses.”
(c)For
purposes of this section, “higher education expenses” means the expenses of attendance at an institution of higher education, as provided in Section 529(e)(3) of the Internal Revenue Code. Notwithstanding Section 529(c)(7) of the
Internal Revenue Code, “education expenses” shall not include any tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.
(1) Section 221(b)(1) is modified by substituting “$5,000” for “$2,500.”
(2) Section 221 is modified by substituting the definition of “qualified higher education expenses” in Section 529(e)(3) of the Internal Revenue Code for the definition of “qualified higher education expenses” in Section 221(d)(2).
(d)
(b) (1) For purposes of complying with Section 41 with respect to the deduction allowed by this section the Legislature finds and declares the following:
(A) The specific goal of this act is to reduce the burden on taxpayers who are paying off student loan debt by allowing those taxpayers to deduct all of the interest paid on qualified education loans during the taxable year.
(B) The performance indicators for the Legislature to use when measuring whether the deduction allowed by this act meets those goals, purposes, and objectives are the following:
(i) The total number of taxpayers claiming the deduction allowed by this section.
(ii) The average dollar value of amounts deducted pursuant to this section.
(iii) A review of the income levels of all of the individual taxpayers claiming the deduction allowed by this section.
(2) (A) No later than December 1, 2025,
June 30, 2026, and annually thereafter, the Franchise Tax Board shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, detailing, to the extent that data is available, the number of taxpayers claiming the deduction allowed by this section, the average dollar value of amounts deducted, and a review of the income levels of all individuals claiming the deduction allowed by this section.
(B) The reporting requirements of this paragraph shall be treated as an exception to Section 19542.
(e)
(c) This section shall remain in effect only until December 1, 2029, and as of that date is repealed.
