Bill Text: CA AB647 | 2017-2018 | Regular Session | Amended

California Assembly Bill 647 (Prior Session Legislation)

Bill Title: Personal income taxes: credit: full-time community college students.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB647 Detail]

Download: California-2017-AB647-Amended.html

Amended IN Assembly May 02, 2017

Amended IN Assembly March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 647

Introduced by Assembly ~~Member~~ Members Reyes and Ridley-Thomas

February 14, 2017

An act to add and repeal Section 17052.3 to of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

AB 647, as amended, Reyes. Personal income taxes: credit: full-time community college students.

The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill, upon appropriation of specified funds by the Legislature, for each taxable year beginning on or after January 1, 2018, and before January 1, 2023, would allow a credit under the Personal Income Tax Law in an amount equal to the fees and other expenses paid or incurred during the taxable year, as does not exceed $2,000, for the enrollment of a full-time community college student for whom the credit was not claimed in any prior taxable year, as specified. The bill would also allow a payment in excess of that credit amount upon appropriation by the Legislature. The bill would require a taxpayer claiming the credit to submit with his or her return a copy of the student’s transcript evidencing completion of an academic year of full-time enrollment in a California community college. The bill would make related findings and declarations regarding the specific goals, purposes, and objectives, performance indicators, and data collection requirements for the credit.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 17052.3 is added to the Revenue and Taxation Code, to read:

17052.3.

(a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2023, there shall be allowed as a credit against the “net tax,” as defined by Section 17039, to a qualified taxpayer an amount equal to the qualified community college expenses paid or incurred during the taxable year.

(b) For purposes of this section:

(1) “Qualified community college expenses” means fees and other expenses paid or incurred for the enrollment or attendance of a qualified full-time community college student in a California community college as does not exceed two thousand dollars ($2,000) per qualified full-time community college student.

(2) “Qualified full-time community college student” means an individual for whom both of the following apply:

(A) The individual completed an academic year of full-time enrollment in a California community college that concluded during the taxable year.

(B) The individual has not been considered a qualified full-time community college student for the purposes of the credit allowed by this section for any prior taxable year.

(3) “Qualified taxpayer” means a taxpayer who is a qualified full-time community college student or who has a dependent who is a qualified full-time community college student.

(c) A qualified taxpayer shall submit with his or her return, a copy of the transcript of the qualified full-time community college student evidencing completion of an academic year of full-time enrollment in a California community college.

(d) If the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall, upon appropriation by the Legislature, be paid to the qualified taxpayer.

(e) This section shall become operative on the effective date of any budget measure specifically appropriating funds to the Franchise Tax Board for its costs of administering this section.
(f) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 2.

For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the following applies to Section 17052.3 of the Revenue and Taxation Code:

(a) The specific goals, purposes, and objectives of the tax credit are to reduce costs for students attending California community colleges, incentivize community college students to pursue full-time enrollment, and increase transfers of community college students to the California State University or the University of California.

(b) The performance indicators for the tax credit are decreasing costs of students attending community colleges, increases in the ratio of full-time community college students to part-time community college students, and increases in the rate of transfer of community college students to the California State University or the University of California.

(c) The specific data to be used to determine whether the tax credit is meeting the goals described in subdivision (a) are the average per-student cost of attending a community college, the ratio of full-time community college students to part-time community college students, and the rate of transfer of community college students to the California State University or the University of California for each calendar year. The baseline measurements are those specific data for the 2017 calendar year. The Legislative Analyst’s Office shall collect and remit the data to the Legislature.