Bill Text: CA SB693 | 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: credits: qualified teachers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB693 Detail]

Download: California-2013-SB693-Amended.html

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BILL NUMBER: SB 693	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 11, 2013

INTRODUCED BY   Senator Correa

                        FEBRUARY 22, 2013

   An act  to add and repeal Sections 17052.5 and 17052.7 of the
Revenue and Taxation Code,   relating to taxation  , to take
effect immediately, tax levy  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 693, as amended, Correa.  Income taxes:  
Personal income tax:  credits: school expenses.
   The Personal Income Tax Law  and the Corporation Tax Law
allow   allows  various credits against the
 taxes   tax  imposed by  those
laws   that law  . 
   This bill would, for taxable years beginning on or after January
1, 2014, and before January 1, 2019, allow a credit against that tax
to low-income and middle-income parents and guardians for
education-related expenses, as defined, not to exceed $500, and a
credit against that tax to qualified taxpayers, as defined, for
instructional materials and classroom supplies, not to exceed $250.
 
   This bill would take effect immediately as a tax levy. 

   This bill would state that it is the intent of the Legislature to
enact legislation that would allow credit and deduction for
education-related expenses for low-income parents and a refundable
credit for costs of instructional and classroom materials paid by
low-income teachers, as specified. 
   Vote: majority. Appropriation: no. Fiscal committee: no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17052.5 is added to the 
 Revenue and Taxation Code   , to read:  
   17052.5.  (a) For each taxable year beginning on or after January
1, 2014, and before January 1, 2019, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, the
qualified amount that was paid or incurred for qualified
education-related expenses for one or more dependent children by a
low-income or middle-income parent or guardian during the taxable
year.
   (b) For purposes of this section:
   (1) "Dependent children" means children who attend kindergarten or
any grades 1 to 12, inclusive, in California at a public, charter,
or private school that has a current private school affidavit on file
with the State Department of Education in the taxable year and who
meet the requirements of Section 152(c)(1)(B), (D), and (E) of the
Internal Revenue Code.
   (2) "Qualified amount" means the following:
   (A) If the qualified education-related expenses are two hundred
fifty dollars ($250) or less, the amount paid or incurred for those
expenses.
   (B) If the qualified education-related expenses are more than two
hundred fifty dollars ($250) and less than one thousand two hundred
fifty dollars ($1,250), two hundred fifty dollars ($250) plus 25
percent of the difference between the amount paid or incurred for
those expenses and two hundred fifty dollars ($250).
   (C) If the qualified education-related expenses are more than one
thousand two hundred fifty dollars ($1,250), five hundred dollars
($500).
   (3) (A) "Qualified education-related expenses" means the costs of
textbooks, school supplies, including, but not limited to, pens,
paper, pencils, notebooks, calculators, and rulers, school uniforms,
computers, computer hardware, and educational computer software used
to learn academic subjects, tuition, tutoring, psychoeducational
diagnostic evaluations to assess the cognitive and academic abilities
of pupils, special education services for pupils who have an
individualized education program or its equivalent, academic
after-school programs, out-of-school enrichment programs, public
transportation, third-party transportation, and the rental or
purchase of educational equipment required for classes held during
the regular school year.
   (B) "Qualified education-related expenses" shall not include any
expenses for the items described in subparagraph (A) that are used in
a trade or business.
   (4) "Low-income or middle-income parent or guardian" means a
parent or legal guardian of a full-time pupil who is under 21 years
of age at the close of the school year who meets both of the
following requirements:
   (A) Both the pupil and the parent or guardian reside in California
when the qualified education-related expenses were paid or incurred.

   (B) The household income does not exceed 300 percent of the
federal Income Eligibility Guidelines published by the Food and
Nutrition Service of the United States Department of Agriculture for
use in determining eligibility for reduced price meals.
   (5) "Tuition" means tuition for a private school with kindergarten
or any grades 1 to 12, inclusive, or for college courses or summer
school courses that satisfy high school graduation requirements.
   (c) (1) The credit amount shall be limited to five hundred dollars
($500) per household.
   (2) If more than one parent or guardian qualifies for this credit,
the following applies:
   (A) The credit shall be allowed to the parent or guardian having
custody for the greater portion of the calendar year.
   (B) If the child resides with more than one parent or guardian for
the same amount of time during the taxable year, the parent or
guardian with the highest adjusted gross income shall be allowed the
credit.
   (d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding four years if necessary, until
the credit is exhausted.
   (e) (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 shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date. 
   SEC. 2.    Section 17052.7 is added to the  
Revenue and Taxation Code   , to read:  
   17052.7.  (a) For each taxable year beginning on or after January
1, 2014, and before January 1, 2019, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the amount paid or incurred by a qualified taxpayer during
the taxable year for instructional materials and classroom supplies,
not to exceed two hundred fifty dollars ($250).
   (b) For purposes of this section:
   (1) "Instructional materials and classroom supplies" means any
unreimbursed expenses, otherwise deductible as a trade or business
expense, for books, supplies, computer equipment, including related
software and services and other equipment, and supplementary
materials used in the classroom.
   (2) "Qualified taxpayer" means a person who works at least 900
hours in the school year as a teacher, instructor, counselor,
principal, or aide in a school for kindergarten or any grades 1 to
12, inclusive.
   (c) A qualified taxpayer shall be allowed this credit only for the
first three years of employment as a teacher, instructor, counselor,
principal, or aide in a school for kindergarten or any grades 1 to
12, inclusive.
   (d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding four years if necessary, until
the credit is exhausted.
   (e) (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 shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date. 
   SEC.   3.    This act provides for a tax
levy within the meaning of Article IV of the Constitution and shall
go into immediate effect.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation that would allow the following:
   (a) A personal income tax credit or deduction for low-income
parents for education-related expenses, including, but not limited
to, tuition, textbooks, uniforms, computer hardware and educational
software, tutors, transportation, and other nontuition educational
expenses, for dependent children in kindergarten and grades 1 to 12,
inclusive, attending private or public schools or homeschooling.
   (b) A refundable personal income tax credit for the costs of
instructional materials and classroom supplies paid by low-income
teachers of kindergarten and grades 1 to 12, inclusive, in public and
private schools.