| Last Version Text |
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-19</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-24</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Hadwick</ns0:AuthorText>
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<ns0:Name>Hadwick</ns0:Name>
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<ns0:Title> An act to amend Section 17072 of 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: deduction: teachers.</ns0:Subject>
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<html:p>The Personal Income Tax Law, in general conformity with federal tax law, allows various deductions from gross income in calculating adjusted gross income. The Personal Income Tax Law generally applies the federal definition of adjusted gross income, but excepts the deduction allowed for certain expenses of elementary and secondary school teachers.</html:p>
<html:p>This bill would
conform with federal law for purposes of the deduction allowed for certain expenses of elementary and secondary school teachers for taxable years beginning on or after January 1, 2026, and before January 1, 2031.</html:p>
<html:p>Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.</html:p>
<html:p>This bill would include findings and collection requirements in compliance with this requirement.</html:p>
<html:p>This bill would take
effect immediately as a tax levy.</html:p>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
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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
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:Num>17072.</ns0:Num>
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(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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(b)
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For taxable years beginning before January 1, 2026, and on or after January 1, 2031, 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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(c)
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Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not
apply.
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to the deduction from gross income in computing adjusted gross income allowed by the amendment to Section 17072 of the Revenue and Taxation Code made by this act, the Legislature finds and declares the following:</html:p>
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(a)
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The specific purpose of the deduction is to achieve conformity with federal law and support teachers that incur the costs of classroom supplies, materials, and professional development, which benefit students.
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(b)
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To the extent that data is available to be collected, the Franchise Tax Board shall collect the number of taxpayers claiming the deduction, the average amount of the deduction claimed by taxpayers, and descriptions of the expenses deducted to determine if the deduction is conforming with federal law, supporting teachers, and benefitting students.
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<ns0:Num>SEC. 3.</ns0:Num>
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<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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| Last Version Text Digest |
The Personal Income Tax Law, in general conformity with federal tax law, allows various deductions from gross income in calculating adjusted gross income. The Personal Income Tax Law generally applies the federal definition of adjusted gross income, but excepts the deduction allowed for certain expenses of elementary and secondary school teachers. This bill would conform with federal law for purposes of the deduction allowed for certain expenses of elementary and secondary school teachers for taxable years beginning on or after January 1, 2026, and before January 1, 2031. Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, deductions, exclusions, or exemptions, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and collection requirements in compliance with this requirement. This bill would take effect immediately as a tax levy. |