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| 1 | + | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 416Introduced by Assembly Member FongFebruary 07, 2019 An act to amend Section 17072 of, and to add and repeal Section 17208 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 416, as introduced, Fong. Personal income taxes: deductions: CalABLE contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.The Personal Income Tax Law conforms to these federal tax provisions. This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, would allow a deduction in computing adjusted gross income in an amount equal to the amount contributed by a taxpayer during the taxable year to a CalABLE account. 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 17072 of the Revenue and Taxation Code is amended to read:17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. SEC. 2. Section 17208 is added to the Revenue and Taxation Code, to read:17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.SEC. 3. 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 20192020 REGULAR SESSION Assembly Bill No. 416Introduced by Assembly Member FongFebruary 07, 2019 An act to amend Section 17072 of, and to add and repeal Section 17208 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 416, as introduced, Fong. Personal income taxes: deductions: CalABLE contributions. The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.The Personal Income Tax Law conforms to these federal tax provisions. This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, would allow a deduction in computing adjusted gross income in an amount equal to the amount contributed by a taxpayer during the taxable year to a CalABLE account. 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 Assembly April 12, 2019 | |
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| 7 | - | Amended IN Assembly April 12, 2019 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill No. 416 | |
| 12 | 12 | ||
| 13 | 13 | Introduced by Assembly Member FongFebruary 07, 2019 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member Fong | |
| 16 | 16 | February 07, 2019 | |
| 17 | 17 | ||
| 18 | 18 | An act to amend Section 17072 of, and to add and repeal Section 17208 of, 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 | - | AB 416, as | |
| 24 | + | AB 416, as introduced, Fong. Personal income taxes: deductions: CalABLE contributions. | |
| 25 | 25 | ||
| 26 | - | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.The Personal Income Tax Law conforms to these federal tax provisions. This bill, for each taxable year beginning on or after January 1, 2019, | |
| 26 | + | The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans.Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.The Personal Income Tax Law conforms to these federal tax provisions. This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, would allow a deduction in computing adjusted gross income in an amount equal to the amount contributed by a taxpayer during the taxable year to a CalABLE account. 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, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans. | |
| 29 | 29 | ||
| 30 | 30 | Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. | |
| 31 | 31 | ||
| 32 | 32 | The Personal Income Tax Law conforms to these federal tax provisions. | |
| 33 | 33 | ||
| 34 | - | This bill, for each taxable year beginning on or after January 1, 2019, | |
| 34 | + | This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, would allow a deduction in computing adjusted gross income in an amount equal to the amount contributed by a taxpayer during the taxable year to a CalABLE account. | |
| 35 | 35 | ||
| 36 | 36 | This bill would take effect immediately as a tax levy. | |
| 37 | 37 | ||
| 38 | 38 | ## Digest Key | |
| 39 | 39 | ||
| 40 | 40 | ## Bill Text | |
| 41 | 41 | ||
| 42 | - | The people of the State of California do enact as follows:SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (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 each taxable year beginning on or after January 1, 2019, | |
| 42 | + | The people of the State of California do enact as follows:SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. SEC. 2. Section 17208 is added to the Revenue and Taxation Code, to read:17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 43 | 43 | ||
| 44 | 44 | The people of the State of California do enact as follows: | |
| 45 | 45 | ||
| 46 | 46 | ## The people of the State of California do enact as follows: | |
| 47 | 47 | ||
| 48 | - | SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (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 each taxable year beginning on or after January 1, 2019, | |
| 48 | + | SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. | |
| 49 | 49 | ||
| 50 | 50 | SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read: | |
| 51 | 51 | ||
| 52 | 52 | ### SECTION 1. | |
| 53 | 53 | ||
| 54 | - | 17072. (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 each taxable year beginning on or after January 1, 2019, | |
| 54 | + | 17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. | |
| 55 | 55 | ||
| 56 | - | 17072. (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 each taxable year beginning on or after January 1, 2019, | |
| 56 | + | 17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. | |
| 57 | 57 | ||
| 58 | - | 17072. (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 each taxable year beginning on or after January 1, 2019, | |
| 58 | + | 17072. (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 each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. | |
| 59 | 59 | ||
| 60 | 60 | ||
| 61 | 61 | ||
| 62 | 62 | 17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided. | |
| 63 | 63 | ||
| 64 | 64 | (b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply. | |
| 65 | 65 | ||
| 66 | 66 | (c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply. | |
| 67 | 67 | ||
| 68 | - | (d) For each taxable year beginning on or after January 1, 2019, | |
| 68 | + | (d) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, Section 62(a) of the Internal Revenue Code, relating to general rule, is modified to provide that the deduction under Section 17208 shall be allowed in determining adjusted gross income. | |
| 69 | 69 | ||
| 70 | - | SEC. 2. Section 17208 is added to the Revenue and Taxation Code, to read:17208. (a) For each taxable year beginning on or after January 1, 2019, | |
| 70 | + | SEC. 2. Section 17208 is added to the Revenue and Taxation Code, to read:17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 71 | 71 | ||
| 72 | 72 | SEC. 2. Section 17208 is added to the Revenue and Taxation Code, to read: | |
| 73 | 73 | ||
| 74 | 74 | ### SEC. 2. | |
| 75 | 75 | ||
| 76 | - | 17208. (a) For each taxable year beginning on or after January 1, 2019, | |
| 76 | + | 17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 77 | 77 | ||
| 78 | - | 17208. (a) For each taxable year beginning on or after January 1, 2019, | |
| 78 | + | 17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 79 | 79 | ||
| 80 | - | 17208. (a) For each taxable year beginning on or after January 1, 2019, | |
| 80 | + | 17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 81 | 81 | ||
| 82 | 82 | ||
| 83 | 83 | ||
| 84 | - | 17208. (a) For each taxable year beginning on or after January 1, 2019, | |
| 84 | + | 17208. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a deduction an amount equal to the amount contributed during the taxable year by a taxpayer to a CalABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code. | |
| 85 | 85 | ||
| 86 | - | (b) This section shall remain in effect only until December 1, 2024, | |
| 86 | + | (b) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 87 | 87 | ||
| 88 | - | SEC. 3. The | |
| 88 | + | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 89 | 89 | ||
| 90 | - | SEC. 3. The | |
| 90 | + | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 91 | 91 | ||
| 92 | - | SEC. 3. The | |
| 92 | + | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 93 | 93 | ||
| 94 | 94 | ### SEC. 3. | |
| 95 | - | ||
| 96 | - | (a) The objective of this act is to increase the amount contributed to CalABLE accounts and to help people with disabilities and their families prepare for the future. | |
| 97 | - | ||
| 98 | - | (b) The Franchise Tax Board shall submit a report, on or before January 1, 2026, to the Legislature that shall include, but is not limited to, the amount of deductions allowed to CalABLE contributors pursuant to Section 17208 of the Revenue and Taxation Code, as added by this act, and findings and declarations relating to the goals of the deduction. The report shall be submitted in compliance with Section 9795 of the Government Code. | |
| 99 | - | ||
| 100 | - | (c) The success of Section 17208 of the Revenue and Taxation Code, as added by this act, shall be measured by calculating the average of the contributions made during for the taxable year beginning on or after January 1, 2020, and before January 1, 2021, and each subsequent taxable year, to determine if there is an increase in contributions per year. | |
| 101 | - | ||
| 102 | - | SEC. 3.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 103 | - | ||
| 104 | - | SEC. 3.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 105 | - | ||
| 106 | - | SEC. 3.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 107 | - | ||
| 108 | - | ### SEC. 3.SEC. 4. |