Personal income taxes: credit: deduction: qualified education loan.

The Personal Income Tax Law allows various credits against the taxes imposed by that law and various deductions in computing the income that is subject to the taxes imposed by that law, including a deduction for interest paid on qualified education loans not to exceed $2,500. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would eliminate that deduction for certain taxpayers and allow a credit to those taxpayers against those taxes in an amount equal to the interest paid by the taxpayer during the taxable year on a qualified education loan, as defined, not to exceed $2,000 in the case of spouses filing a joint return or $1,000 for other individuals. The bill would also provide that the credit amount is $0 for taxable years beginning on or after January 1, 2020, and before January 1, 2025, unless otherwise specified in a bill providing for appropriations related to the Budget Act, in which case the bill would instead allow the deduction. The bill, for taxable years beginning on or after January 1, 2025, would make that credit inoperative and would reinstate the eliminated deduction. Existing law requires a bill that would authorize a new credit against the tax imposed by the Personal Income Tax Law or the Corporation Tax Law to contain specific goals, purposes, and objectives that the new credit will achieve, and detailed performance indicators and data collection requirements for determining whether the new credit achieves these goals, purposes, and objectives. This bill would make findings specifying the goals, purposes, and objectives of the above-described tax credits and would require the Franchise Tax Board to provide a report regarding the credit. This bill would take effect immediately as a tax levy.