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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Michelle Rodriguez</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Michelle Rodriguez</ns0:Name>
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<ns0:Title> An act to amend Sections 17072, 17140, and 17140.3 of, and to add Section 17206.2 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal Income Tax Law: qualified tuition program.</ns0:Subject>
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<html:p>The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, known as the Golden State Scholarshare Trust Act, establishes the Golden State Scholarshare College Savings Trust (Scholarshare trust), under the administration of the Scholarshare Investment Board, to provide financial aid for postsecondary education costs of participating students. Existing state and federal law generally includes in gross income distributions from a qualified tuition program, as defined to include the Scholarshare trust, except as provided.</html:p>
<html:p>Existing federal law, the Consolidated Appropriations Act, 2023, excludes from gross income, for federal income tax purposes, distributions from a
qualified tuition program that are made after December 31, 2023, and are paid in a direct trustee-to-trustee transfer to a Roth IRA, as described.</html:p>
<html:p>The Personal Income Tax Law generally conforms to federal income tax law relating to qualified state tuition programs, except as specified. Among those exceptions, existing state law does not conform to the above-described exclusion for distributions from a qualified tuition program.</html:p>
<html:p>This bill would instead conform to that federal exclusion for taxable years beginning on or after January 1, 2026, and before January 1, 2030.</html:p>
<html:p>The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.</html:p>
<html:p>This bill would, for taxable years beginning on or after
January 1, 2026, would allow a deduction in determining adjusted gross income for contributions to a Scholarshare account by a qualified taxpayer, as specified.</html:p>
<html:p>Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.</html:p>
<html:p>This bill would include additional information required for any bill authorizing a new tax expenditure.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 17072 of the
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is amended to read:
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<ns0:Num>17072.</ns0:Num>
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<html:p>
(a)
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Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
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<html:p>
(b)
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Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
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<html:p>
(c)
<html:span class="EnSpace"/>
Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For each taxable year beginning on or after January 1, 2026, Section 62(a) of the Internal Revenue Code, relating to the general rule, is modified to
provide that the deduction under Section 17206.2 shall be allowed in determining adjusted gross income.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 17140 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:Num>17140.</ns0:Num>
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<html:p>
(a)
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For purposes of this section, the following terms have the following meanings as provided in the Golden State Scholarshare Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code):
</html:p>
<html:p>
(1)
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“Beneficiary” has the meaning set forth in Section 69980 of the Education Code.
</html:p>
<html:p>
(2)
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“Benefit” has the meaning set forth in Section 69980 of
the Education Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Participant” has the meaning set forth in
Section 69980 of the Education Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Participation agreement” has the meaning set forth in Section 69980 of the Education Code.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Scholarshare trust” has the meaning set forth in Section 69980 of the Education Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 1998, and before January 1, 2002, except as otherwise provided in subdivision (c), gross income of a beneficiary or a participant does not include any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Any distribution or earnings under a Scholarshare trust participation agreement, as
provided in Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of
Division 5 of Title 3 of the Education Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any contribution to the Scholarshare trust on behalf of a beneficiary shall not be includable as gross income of that beneficiary.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 1998, and before January 1, 2002:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Any distribution under a Scholarshare trust participation agreement shall be includable in the gross income of the distributee in the manner as provided under Section 72 of the Internal Revenue Code, as modified by Section 17085, to the extent not excluded from gross income under this part. For purposes of applying Section 72 of the Internal Revenue Code, the following apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
All Scholarshare trust accounts of which an individual is a
beneficiary shall be treated as one account, except as otherwise provided.
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<html:p>
(B)
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All distributions during a taxable year shall be treated as one distribution.
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<html:p>
(C)
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The value of the participation agreement, income on the participation agreement, and investment in the participation agreement shall be computed as of the close of the calendar year in which the taxable year begins.
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<html:p>
(2)
<html:span class="EnSpace"/>
A contribution by a for-profit or nonprofit entity, or by a state or local government agency, for the benefit of an owner or employee of that entity or a beneficiary whom the owner or employee has the power to designate, including the owner or employee’s minor children, shall be included in the gross income of that owner or employee in the year the contribution is made.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For
purposes of this subdivision, “distribution” includes any benefit furnished to a beneficiary under a participation agreement, as provided in Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3 of
the Education Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Paragraph (1) shall not apply to that portion of any distribution that, within 60 days of distribution, is transferred to the credit of another beneficiary under the Scholarshare trust who is a “member of the family,” as that term is used in Section 529(e)(2) of the Internal Revenue Code, as amended by Section 211 of the Taxpayer Relief Act of 1997 (Public Law 105-34), of the former beneficiary of that Scholarshare trust.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Any change in the beneficiary of an interest in the Scholarshare trust shall not be treated as a distribution for purposes of paragraph (1) if the new beneficiary is a “member of the family,” as that term is used in Section 529(e)(2) of the Internal Revenue Code, as amended by Section 211 of the Taxpayer Relief Act of 1997 (Public Law 105-34), of the former beneficiary of that Scholarshare
trust.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2002, Sections 529(c) and 529(e) of the Internal Revenue Code, relating to tax treatment of designated beneficiaries and contributors and to other definitions and special rules, respectively, shall apply, except as otherwise provided in Part 11 (commencing with Section 23001) and this part.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The amendments made by Section 302(a)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(e) of the Internal Revenue Code, relating to other definitions and special rules, shall apply except as otherwise provided.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The amendments made by Section 302(b)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(c)(3) of the Internal Revenue Code, relating
to distributions, shall apply, except as otherwise provided.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The amendments made by Section 302(c)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(c)(3)(D) of the Internal Revenue Code, relating to special rule for contributions of refunded amounts, shall apply, except as otherwise provided.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The amendments made by Section 11025(a) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(c)(3)(C) of the Internal Revenue Code, relating to change in beneficiaries or programs, shall apply, except as otherwise provided.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The amendments made by Section 11032(a)(1) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(c) of the Internal Revenue Code, relating to tax treatment of
designated beneficiaries and contributors, shall not apply, except as otherwise provided.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The amendments made by Section 11032(a)(2) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(e)(3)(A) of the Internal Revenue Code, relating to qualified higher education expenses, shall not apply, except as otherwise provided.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
In the case of any distribution made under Section 529(e)(3)(A) of the Internal Revenue Code, as amended by Section 11032(a)(2) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97), that would be treated for federal income tax purposes as a “qualified higher education expense” under Section 529(c)(7) of the Internal Revenue Code, as added by Section 11032(a)(1) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97), the amount of that distribution shall, notwithstanding anything in Section 529 of the Internal Revenue Code to the contrary,
be includable in the gross income of the distributee in the manner as provided under Section 72 of the Internal Revenue Code.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Any distribution includable in the gross income of a distributee under subparagraph (C) shall not affect the exempt status of the qualified tuition program under Section 529 of the Internal Revenue Code for purposes of this part.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2021, the amendments made by Section 302(a) of Division O of the Further Consolidated Appropriations Act, 2020 (Public Law 116-94) to Section 529(c)(8) of the Internal Revenue Code, relating to distributions for certain expenses associated with registered apprenticeship programs, shall apply.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2021, the amendments made by Section
302(b)(1) of Division O of the Further Consolidated Appropriations Act, 2020 (Public Law 116-94) to Section 529(c)(9) of the Internal Revenue Code, relating to distributions for qualified education loan repayments, shall apply.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For taxable years beginning before January 1, 2026, and for taxable years beginning on or after January 1, 2030, Section 529(c)(3)(E) of the Internal Revenue Code, relating to special rollovers to Roth IRAs from long-term qualified tuition programs, shall not apply.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In the case of any distribution made under Section 529(c)(3)(E) of the Internal Revenue Code, relating to the special rollover to Roth IRAs from long-term qualified
tuition programs, treated for federal income tax purposes as a “qualified rollover contribution” under Section 408A(e)(1)(C) of the Internal Revenue Code, the amount of that distribution shall, notwithstanding Section 529 or Section 408A of the Internal Revenue Code to the contrary, be includable in the gross income of the distributee in the manner as provided under Section 72 of the Internal Revenue
Code for taxable years beginning before January 1, 2026, and for taxable years beginning on or after January 1, 2030.
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<html:p>
(3)
<html:span class="EnSpace"/>
Any distribution includable in the gross income of a distributee under paragraph (2) shall not affect the exempt status of the qualified tuition program under Section 529 of the Internal Revenue Code for purposes of this part.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 17140.3 of the
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is amended to read:
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<ns0:Num>17140.3.</ns0:Num>
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<html:p>Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Section 529(a) of the Internal Revenue Code is modified as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
By substituting the phrase “under this part and Part 11 (commencing with Section 23001)” in lieu of the phrase “under this subtitle.”
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<html:p>
(2)
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By substituting “Article 2 (commencing with Section 23731)” in lieu of “Section 511.”
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code shall be filed with the Franchise Tax
Board at the same time and in the same manner as specified in that section.
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<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The amendments made by Section 302(a)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(e) of the Internal Revenue Code, relating to other definitions and special rules, shall apply except as otherwise provided.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The amendments made by Section 302(b)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(c)(3) of the Internal Revenue Code, relating to distributions, shall apply, except as otherwise provided.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The amendments made by Section 302(c)(1) of Division Q of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 529(c)(3)(D) of the Internal Revenue Code, relating to special rule for
contributions of refunded amounts, shall apply, except as otherwise provided.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The amendments made by Section 11025(a) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(c)(3)(C) of the Internal Revenue Code, relating to change in beneficiaries or programs, shall apply, except as otherwise provided.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The amendments made by Section 11032(a)(1) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(c) of the Internal Revenue Code, relating to tax treatment of designated beneficiaries and contributors, shall not apply, except as otherwise provided.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The amendments made by Section 11032(a)(2) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 529(e)(3)(A) of the Internal Revenue Code, relating to qualified higher
education expenses, shall not apply, except as otherwise provided.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
In the case of any distribution made under Section 529(e)(3)(A) of the Internal Revenue Code, as amended by Section 11032(a)(2) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97), that would be treated for federal income tax purposes as a “qualified higher education expense” under Section 529(c)(7) of the Internal Revenue Code, as added by Section 11032(a)(1) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97), the amount of that distribution shall, notwithstanding anything in Section 529 of the Internal Revenue Code to the contrary, be includable in the gross income of the distributee in the manner as provided under Section 72 of the Internal Revenue Code.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Any distribution includable in the gross income of a distributee under subparagraph (C) shall not affect the exempt status of the qualified
tuition program under Section 529 of the Internal Revenue Code for purposes of this part.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2021, the amendments made by Section 302(a) of Division O of the Further Consolidated Appropriations Act, 2020 (Public Law 116-94) to Section 529(c)(8) of the Internal Revenue Code, relating to distributions for certain expenses associated with registered apprenticeship programs, shall apply.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For taxable years beginning on or after January 1, 2021, the amendments made by Section 302(b)(1) of Division O of the Further Consolidated Appropriations Act, 2020 (Public Law 116-94) to Section 529(c)(9) of the Internal Revenue Code, relating to distributions for qualified education loan repayments, shall apply.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For
taxable years beginning before January 1, 2026, and for taxable years beginning on or after January 1, 2030, Section 529(c)(3)(E) of the Internal Revenue Code, relating to special rollovers to Roth IRAs from long-term qualified tuition programs, shall not apply.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In the case of any distribution made under Section 529(c)(3)(E) of the Internal Revenue Code, relating to the special rollover to Roth IRAs from long-term qualified tuition programs, treated for federal income tax purposes as a “qualified rollover contribution” under Section 408A(e)(1)(C) of the Internal Revenue Code, the amount of that distribution shall, notwithstanding Section 529 or Section 408A of the Internal Revenue Code to the contrary, be includable in the gross income of the distributee in the manner as provided under Section 72 of the Internal Revenue
Code for taxable years beginning before January 1, 2026, and for taxable years beginning on or after January 1, 2030.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Any distribution includable in the gross income of a distributee under paragraph (2) shall not affect the exempt status of the qualified tuition program under Section 529 of the Internal Revenue Code for purposes of this part.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 17206.2 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_D7008DD7-5FC2-4457-BB26-FC4E149F5945">
<ns0:Num>17206.2.</ns0:Num>
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(a)
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For taxable years beginning on or after January 1, 2026, there shall be allowed as a deduction in determining adjusted gross income an amount equal to the monetary contribution made by a qualified taxpayer during the taxable year to one or more accounts established pursuant to the California qualified tuition program on behalf of a beneficiary, but in no event shall the deduction amount exceed the following:
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(1)
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In the case of a qualified taxpayer who is a head of household, a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, ten thousand dollars ($10,000).
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(2)
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In the case of a qualified taxpayer other than as described in paragraph (1),
five thousand dollars ($5,000).
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(b)
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For purposes of this section, the following definitions apply:
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(1)
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“California qualified tuition program” means a qualified tuition program, as defined in Section 529 of the Internal Revenue Code, relating to qualified tuition programs, that is established pursuant to the Golden State Scholarshare Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code).
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(2)
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“Monetary contribution” means cash contributions, as described in Section 529(b)(2) of the Internal Revenue Code, relating to cash contributions, but does not include either of the following:
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(A)
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A cash contribution to the California qualified tuition program from a qualified tuition program
established pursuant to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, that is not the California qualified tuition program.
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(B)
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A cash contribution transferred from the credit of one beneficiary under the California qualified tuition program to the credit of another beneficiary under the California qualified tuition program.
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(3)
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“Qualified higher education expenses” has the same meaning as that term is defined in Section 529 of the Internal Revenue Code, relating to qualified tuition programs.
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(4)
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“Qualified taxpayer” means an individual or a married couple if filing a joint return who, on behalf of a beneficiary, contributes money to a California qualified tuition program for which the taxpayer, or a spouse in the case of a married couple filing a joint return, is the account
owner and whose adjusted gross income does not exceed the following:
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(A)
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In the case of a taxpayer who is a head of household, a surviving spouse, as defined in Section 17046, or a married couple filing a joint return, one hundred fifty thousand dollars ($150,000).
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(B)
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In the case of a taxpayer other than as described in subparagraph (A), seventy-five thousand dollars ($75,000).
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(c)
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For each taxable year beginning on or after January 1, 2027, the Franchise Tax Board shall recompute the adjusted gross income limits set forth in paragraph (4) of subdivision (b) by multiplying the adjusted gross income limit for the preceding taxable year by the inflation adjustment factor computed pursuant to subparagraph (A) of paragraph (2) of subdivision (h) of Section 17041, rounded to the nearest dollar.
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(d)
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(1)
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In the case of any distribution in excess of qualified higher education expenses, the aggregate amount of the deduction allowed under subdivision (a) that reduced the qualified taxpayer’s gross income in any taxable year shall be added to the gross income of the qualified taxpayer in the taxable year of the distribution to the extent that the distribution is attributable to the aggregate amount of contributions for which a deduction is allowed under this section in taxable years beginning on or after January 1, 2026.
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(2)
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Paragraph (1) shall not apply to that portion of a distribution that, within 60 days of the distribution, is transferred to another California qualified tuition program.
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(e)
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For purposes of Section 529(c)(3) of the Internal Revenue Code, relating to distributions, amounts
allowed as a deduction under this section shall not be treated as investment in the contract in applying Section 72 of the Internal Revenue Code, relating to annuities; certain proceeds of endowment and life insurance contracts.
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(f)
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A qualified taxpayer shall maintain records that are adequate to substantiate any deduction allowed under this section and shall provide those records to the Franchise Tax Board upon request.
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(g)
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The Franchise Tax Board may adopt regulations necessary or appropriate to carry out this section. The Administrative Procedure Act (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 standards, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
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(h)
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(1)
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For purposes of complying with Section 41, the Legislature finds and declares as follows:
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(A)
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The objective of the deduction allowed by this section is as follows:
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(i)
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To provide a tax incentive to motivate California families to open and contribute to a Scholarshare account, California’s 529 college savings plan account, for the purposes of saving for future college expenses, thereby encouraging more Californians to pursue a postsecondary education and reducing the amount of student loan debt they may accumulate upon graduation.
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(ii)
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To reduce the amount of student loan debt on a dollar-for-dollar basis, thereby increasing a person’s ability to purchase a home, car, or other products that help stimulate economic activity.
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(B)
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The performance indicators for the Legislature to use in determining whether the deduction achieves the stated goal are as follows:
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(i)
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The number of deductions allowed pursuant to this section.
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(ii)
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The total dollar amount of deductions allowed pursuant to this section.
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(iii)
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The number of new Scholarshare accounts opened during a calendar year in which the deduction allowed by this section is in effect.
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(2)
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The Scholarshare Investment Board shall do all of the following:
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(A)
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Collect data on the amount of deductions allowed and the aggregated income information for taxpayers allowed those deductions for the taxable year form the Franchise Tax Board upon finalization of
the data but no later than April 1 of the second calendar year following the taxable year. Upon request of the Scholarshare Investment Board, the Franchise Tax Board shall provide the information required by this clause. The disclosure provisions of this clause shall be treated as an exception to Section 19542.
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(B)
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Collect data on the total amount of contributions made to Scholarshare accounts no later than March 1 of each calendar year that the deduction may be claimed on a tax return.
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(C)
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Survey new and existing Scholarshare account owners to collect information about their motivation to do all of the following:
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(i)
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Open a Scholarshare account.
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(ii)
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Contribute to a Scholarshare account.
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(iii)
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Increase the frequency and amount of contributions to a Scholarshare account.
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(iv)
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Refer a Scholarshare account to friends and family.
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(D)
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On or before July 1, 2027, and annually thereafter, the Scholarshare Investment Board shall deliver a report to the Legislature that shall include, but not be limited to, prior year and cumulative baseline data and information described in clause (i) to (iii), inclusive. The report shall be submitted in compliance with Section 9795 of the Government Code.
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</ns0:BillSection>
<ns0:BillSection id="id_83238D5F-B6A4-4455-BB3B-F3AF609C2079">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>For purposes of complying with Section 41 with respect to the amendments made to Sections 17140 and 17140.3 of the Revenue and Taxation Code, the Legislature finds and declares the following:</html:p>
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(a)
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The specific goal that the exclusion will achieve is to encourage additional savings for educational expenses and to conform to federal law to bring tax relief and ease return preparation for taxpayers who transfer funds pursuant to these amendments.
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(b)
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There is no available data to collect or report with respect to the exclusion..
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</ns0:BillSection>
<ns0:BillSection id="id_CB08F9B5-37B2-4463-8F1B-1D2D226E45C4">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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