Personal Income Tax Law: qualified tuition program.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill aims to align California’s tax laws with federal regulations regarding qualified tuition programs, specifically the Golden State Scholarshare College Savings Trust. It proposes to allow taxpayers who contribute to Scholarshare accounts to deduct those contributions from their adjusted gross income, starting in 2026, up to a maximum of $10,000 for single filers and $20,000 for married couples filing jointly. The bill also includes provisions for data collection and reporting to assess the program’s effectiveness in encouraging college savings.
Key provisions
- Allows a deduction for contributions to Scholarshare accounts in determining adjusted gross income.
- The deduction is capped at $10,000 for single filers and $20,000 for married couples filing jointly.
- The deduction is available for taxable years beginning on or after January 1, 2026.
- Conforms California law to the federal exclusion for distributions from qualified tuition programs.
- Requires the Scholarshare Investment Board to collect and report data on the program’s impact.
- Includes provisions for data sharing between the Franchise Tax Board and the Scholarshare Investment Board.
- Modifies existing sections of the Revenue and Taxation Code to align with federal tax law.
- Adds a new section (19548.3.5) to facilitate data collection for program evaluation.
Who is affected
- Taxpayers
- California residents
Bill text
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Sponsors
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1 on record
Primary sponsor
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