Personal income tax: exclusions: educational awards.

The Personal Income Tax Law, in modified conformity with federal law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing federal law, known as the National and Community Service State Grant Program, gives educational awards to individuals based on the individual's participation in an approved national service position. That law also provides grants to states, subdivisions of states, and other public and private organizations to carry out national service programs, as defined, including grants to the CaliforniaVolunteers program administered by the office of the Governor. CaliforniaVolunteers, through the California For All Education Award program, offers educational awards using funds granted pursuant to the National and Community Service State Grant Program. This bill would exclude from gross income certain educational awards received by a taxpayer pursuant to the federal National and Community Service State Grant Program. These provisions would become operative upon passage of federal legislation that would exclude these educational awards from gross income for federal income tax purposes, and would remain operative for 5 years. This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would exclude from gross income any amount received as a California For All Education Award, as defined. Existing law requires any bill authorizing a new tax expenditure, defined to include an exclusion from income, to contain, among other things, specific goals, purposes, and objectives that 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.