Golden State Scholarshare Trust: Personal Income Tax Law: gross income: deductions.

Existing law, known as the Golden State Scholarshare Trust Act, establishes the Golden State Scholarshare College Savings Trust, under the administration of the Scholarshare Investment Board, to provide financial aid for postsecondary education costs of participating students. Existing law defines "qualified higher education expenses" for purposes of the Golden State Scholarshare Trust Act to mean the expenses of attendance at an institution of higher education, as specified. This bill would add expenses associated with participation in a registered apprenticeship program and payment on the principal or interest of a qualified education loan to the definition of "qualified higher education expenses." 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. That law excludes from gross income distributions from a qualified tuition program, as defined, for qualified higher education expenses. Existing federal law, the Further Consolidated Appropriations Act, 2020, expanded the definition of "qualified higher education expenses" to include expenses associated with registered apprenticeship programs and payment on the principal or interest of a qualified education loan. The act also made coordinating changes related to the deduction of interest paid on a qualified education loan. This bill would, for taxable years beginning on or after January 1, 2021, conform state tax law to those changes relating to qualified higher education expenses made by the act.