Personal income taxes: deduction: California qualified tuition program.

The Personal Income Tax Law, in modified conformity with federal income tax law, excludes from the gross income of a beneficiary of, or contributor to, a qualified tuition program, which includes a Golden State Scholarshare College Savings Trust, distributions or earnings under that program, as specified. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow under that law a deduction against gross income in the amount equal to the monetary contribution made by a qualified taxpayer, as defined, to the California qualified tuition program established pursuant to the Golden State Scholarshare Trust Act not to exceed either $5,000 or $10,000, as provided. The bill would require, with exceptions, in the case of any distribution in excess of qualified higher education expenses, as defined, the aggregate amount of the deduction allowed that reduced the qualified taxpayer's gross income in any taxable year to be added to the gross income of the qualified taxpayer in the taxable year of the distribution, as provided. The bill would require the Scholarshare Investment Board to report to the Legislature, on an annual basis, specified data related to this deduction and Scholarshare accounts and would require the Franchise Tax Board to provide certain information to the Scholarshare Investment Board upon request. This bill would take effect immediately as a tax levy.