CaliforniaPersonal Income Tax Law: qualified tuition program.
What it does
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.
More detail
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.
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.
This bill would instead conform to that federal exclusion for taxable years beginning on or after January 1, 2026, and before January 1, 2031.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.
This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for contributions to a Scholarshare account by a qualified taxpayer, as specified.
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.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 14In committee: Held under submission.Latest
- May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
- May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 27). Re-referred to Com. on APPR.Minor
- Apr 27
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 14Re-referred to Com. on REV. & TAX.Minor
- Apr 13From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Apr 6In committee: Set, first hearing. Referred to REV. & TAX. suspense file.Minor
- Mar 9Referred to Com. on REV. & TAX.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced