Amended
IN
Assembly
January 12, 2022 |
Amended
IN
Assembly
January 03, 2022 |
Introduced by Assembly Member Mayes |
February 16, 2021 |
(a)Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
(b)Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
(c)Section 62(a)(21) of the Internal Revenue Code, relating to attorneys’
fees relating to awards to whistleblowers, shall not apply.
(d)For taxable years beginning on or after January 1, 2023, and before January 1, 2028, Section 62(a) of the Internal Revenue Code, relating to the general rule, is modified to provide that the deduction under Section 17205 shall be allowed in determining adjusted gross income.
(1)“Dependent” has the same meaning as the term is defined by Section 152 of the Internal Revenue Code, relating to dependent defined, determined without regard to Sections 152(b)(1), Section 152(b)(2), and Section 152(d)(1)(B) of the Internal Revenue Code.
(2)(A) “Qualified education loan” means an indebtedness
incurred by the taxpayer solely to pay for higher education expenses that are incurred on behalf of the taxpayer or the taxpayer’s spouse or dependent, who is the taxpayer’s spouse or dependent at the time the indebtedness is incurred.
(B)“Qualified education loan” includes indebtedness used to refinance indebtedness that qualified as a qualified education loan.
(C)“Qualified education loan” does not include the following:
(i)Indebtedness owed to a person who is related, within the meaning of Section 267(b) or 707(b) of the Internal Revenue Code, relating to relationships and certain sales or exchanges of property with respect to controlled partnerships, respectively.
(ii)Indebtedness owed to a person by reason of a loan under a qualified employer plan, as defined in Section 72(p)(4) of the Internal Revenue Code, relating to qualified employer plan, etc., or under a contract referred to in Section 72(p)(5) of the Internal Revenue Code, relating to special rules for loans, etc., from certain contracts.
(3)“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.