An act to amend Section 17072 of, and to add and repeal Section 17052.5 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

The people of the State of California do enact as follows:


SECTION 1.
The Legislature finds and declares all of the following:
(a) While ensuring the quality education of all of California’s
school children
schoolchildren
is a shared responsibility of the general public, it is foremost the duty of individual parents and teachers.
(b) Providing tax relief for citizens who shoulder an extra weight in pursuit of the common good has long been considered sound public policy.
(c) Every school year, kindergarten and grades 1 to 12, inclusive, parents across California pay at their own expense to obtain vital educational resources and services that are essential to those children entrusted to their parents’ care.
(d) State education tax relief can help empower and engage low- and middle-income families in personally caring for their own
school children’s
schoolchildren’s
learning needs, which they know most intimately.
SEC. 2.
Section 17052.5 is added to the Revenue and Taxation Code, to read:
17052.5.
(a) For each taxable year beginning on or after January 1, 2016, and before January 1, 2021, there shall be allowed as a deduction an amount equal to the qualified amount that was paid or incurred for qualified education-related expenses for one or more dependent children by a qualified taxpayer during the taxable year.
(b) For purposes of this section:
(1) “Dependent children” means
one or more
children who
attend
meet all of the following requirements:
(A) Attend
kindergarten or any of grades 1 to 12, inclusive, in California at a public, charter, or private school that has a current private school affidavit on file with the State Department of Education in the taxable
year and who meet
year.
(B) Are deemed a full-time pupil in accordance with the compulsory education requirements of Sections 48200 and 48222 of the Education Code, if applicable.
(C) Are under 21 years of age at the end of the school year.
(D) Meet
the requirements of Section 152(c)(1)(D) and (E) of the Internal Revenue Code.
(E) Are claimed as the dependent children on the original, timely filed return of the qualified taxpayer.
(2) “Qualified amount” means the amount paid or incurred for qualified education-related expenses, not to exceed the amount specified in subdivision (c).
(3) (A) “Qualified education-related expenses” means the kindergarten or any of grades 1 to 12, inclusive, costs of: textbooks and school supplies, including, but not limited to, pens, paper, pencils, notebooks, calculators, and rulers; the rental or purchase of educational equipment required for classes during the regular schoolday; school uniforms that are not part of a cocurricular activity; computers, computer hardware, and educational computer software used to learn academic subjects; fees for college courses at public institutions or independent nonprofit colleges, or for summer school courses that satisfy high school graduation requirements; psychoeducational diagnostic evaluations to assess the cognitive and academic abilities of
pupils;
dependent children;
special education and related services for
pupils
dependent children
who have an individualized education program or its equivalent; out-of-school enrichment programs, tutoring, and summer programs that are academic in nature; and public transportation or third-party transportation expenses for traveling directly to and from school.
(B) “Qualified education-related expenses” shall not include any expenses for the items described in subparagraph (A) that also are used in a trade or business.
(4) “Qualified taxpayer” means a parent or legal guardian of
a full-time pupil who is under 21 years of age at the close of the school year
one or more dependent children
who
meets both
meet all
of the following requirements:
(A) Both the
pupil
dependent children
and the parent or guardian reside in California when the qualified education-related expenses are paid or incurred.
(B) (i) The household income does not exceed 250 percent of the federal Income Eligibility Guidelines published by the Food and Nutrition Service of the United States Department of Agriculture for use in determining eligibility for reduced price meals.
(ii)
Household income
“Household income”
means
adjusted
gross income as defined in Section
61
62
of the Internal Revenue Code.
(c) The total deduction allowed under this section to a qualified taxpayer shall not exceed two thousand five hundred dollars ($2,500) in a taxable year. If more than one qualified taxpayer may be allowed this deduction for
a
dependent
child,
children, including a qualified taxpayer filing a joint return,
the sum of all deductions allowed under this section for
that
those
dependent
child
children
shall not exceed two thousand five hundred dollars ($2,500) in a taxable year.
(d) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section.
(2) 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 standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.
(e) This section shall remain in effect only until December 1, 2021, and as of that date is repealed.
SEC. 3.
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) Section 62(a) of the Internal Revenue Code is modified to provide that the deduction under Section 17052.5 shall be allowed in determining adjusted gross income.
SEC. 4.
It is the intent of the Legislature to make the findings required by Section 41 of the Revenue and Taxation Code.
SEC. 5.
This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.

Summary: The Personal Income Tax Law allows various deductions in computing income that is subject to tax under that law.
This bill, for taxable years on or after January 1, 2016, and before January 1, 2021, would allow a deduction from
adjusted
gross income, not to exceed $2,500, for the cost of education-related expenses of the taxpayer’s dependent child or children attending public or private school, as specified.
This bill would take effect immediately as a tax levy.