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| 1 | + | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1218Introduced by Senator GainesFebruary 15, 2018 An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1218, as introduced, Gaines. Personal income taxes: deduction: 529 college savings plans: contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, as indexed for inflation. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1218Introduced by Senator GainesFebruary 15, 2018 An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1218, as introduced, Gaines. Personal income taxes: deduction: 529 college savings plans: contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, as indexed for inflation. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Senate May 10, 2018 | |
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| 7 | - | Amended IN Senate May 10, 2018 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
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| 11 | 11 | Senate Bill No. 1218 | |
| 12 | 12 | ||
| 13 | 13 | Introduced by Senator GainesFebruary 15, 2018 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator Gaines | |
| 16 | 16 | February 15, 2018 | |
| 17 | 17 | ||
| 18 | 18 | An act to add Section 17206.2 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 19 | 19 | ||
| 20 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 21 | 21 | ||
| 22 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | - | SB 1218, as | |
| 24 | + | SB 1218, as introduced, Gaines. Personal income taxes: deduction: 529 college savings plans: contributions. | |
| 25 | 25 | ||
| 26 | - | The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law.This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, | |
| 26 | + | The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, as indexed for inflation. This bill would take effect immediately as a tax levy. | |
| 27 | 27 | ||
| 28 | 28 | The Personal Income Tax Law, in modified conformity with federal income tax laws, excludes from the gross income distributions or earnings of a beneficiary of, or a contributor to, a qualified tuition program, as provided, and contributions to a plan are not deductible in computing the income that is subject to the taxes imposed by that law. | |
| 29 | 29 | ||
| 30 | - | This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, | |
| 30 | + | This bill, for taxable years beginning on or after January 1, 2018, would allow as a deduction under that law the lesser of (1) the amount contributed by a qualified taxpayer, as defined, to a qualified tuition program, as specified, or (2) $20,000, as indexed for inflation. | |
| 31 | 31 | ||
| 32 | 32 | This bill would take effect immediately as a tax levy. | |
| 33 | 33 | ||
| 34 | 34 | ## Digest Key | |
| 35 | 35 | ||
| 36 | 36 | ## Bill Text | |
| 37 | 37 | ||
| 38 | - | The people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 40 | 40 | The people of the State of California do enact as follows: | |
| 41 | 41 | ||
| 42 | 42 | ## The people of the State of California do enact as follows: | |
| 43 | 43 | ||
| 44 | - | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 44 | + | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read:17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 45 | 45 | ||
| 46 | 46 | SECTION 1. Section 17206.2 is added to the Revenue and Taxation Code, to read: | |
| 47 | 47 | ||
| 48 | 48 | ### SECTION 1. | |
| 49 | 49 | ||
| 50 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 50 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 51 | 51 | ||
| 52 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 52 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
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| 54 | - | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 54 | + | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d).(b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3.(c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule.(d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000).(2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
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| 57 | 57 | ||
| 58 | 58 | 17206.2. (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction the lesser of the amount contributed by a qualified taxpayer during the taxable year to a qualified tuition program under Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3, or the applicable amount determined under subdivision (d). | |
| 59 | 59 | ||
| 60 | 60 | (b) For purposes of this section, qualified taxpayer means an individual who, on behalf of a beneficiary, contributes money to a qualified tuition program and meets all of the other applicable requirements of Section 529 of the Internal Revenue Code, relating to qualified tuition programs, as modified by Section 17140.3. | |
| 61 | 61 | ||
| 62 | 62 | (c) Section 67(b) of the Internal Revenue Code, relating to miscellaneous itemized deductions, is modified to additionally provide that the deduction allowed under this section is an itemized deduction that is not subject to the 2-percent floor on itemized deductions under Section 67(a) of the Internal Revenue Code, relating to general rule. | |
| 63 | 63 | ||
| 64 | - | (d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). the following amounts: | |
| 65 | - | ||
| 66 | - | (A) For spouses filing joint returns, heads of households, and surviving spouses, as defined in Section 17046, six thousand dollars ($6,000). | |
| 67 | - | ||
| 68 | - | (B) For a single individual or a spouse filing separately, three thousand dollars ($3,000). | |
| 64 | + | (d) (1) The amount allowed as a deduction under subdivision (a) shall not exceed twenty thousand dollars ($20,000). | |
| 69 | 65 | ||
| 70 | 66 | (2) For each taxable year beginning on or after January 1, 2019, the Franchise Tax Board shall recompute the deduction amount prescribed in paragraph (1) in the manner described in subdivision (h) of Section 17041. | |
| 71 | 67 | ||
| 72 | 68 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 73 | 69 | ||
| 74 | 70 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 75 | 71 | ||
| 76 | 72 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 77 | 73 | ||
| 78 | 74 | ### SEC. 2. |