California 2023-2024 Regular Session Status: In Committee 3 D cosponsors

AB 1932 — Personal income tax: mortgage interest deduction.

Last action — In committee: Held under submission.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The Personal Income Tax Law allows various deductions in computing the income that is subject to the taxes imposed by that law, including, in modified conformity with federal income tax laws, a deduction for a limited amount of interest paid on acquisition indebtedness, as defined, with respect to a qualified residence of the taxpayer. Existing law limits the aggregate amount treated as acquisition indebtedness for these purposes to $1,000,000, or $500,000 in the case of a married individual filing a separate return. Existing law specifies for these purposes that a qualified residence includes the taxpayer's principal residence and one other residence selected by the taxpayer, as provided. This bill, for taxable years beginning on or after January 1, 2025, would disallow the deduction of acquisition indebtedness with respect to a qualified residence of a taxpayer other than the principal residence. This bill would require the Franchise Tax Board, in consultation with the Department of Finance, to estimate the amount of additional revenue resulting from the above-described modifications made with respect to the calculation of taxable income under the Personal Income Tax Law by this bill and to notify the Controller of that amount, as provided. The bill would establish the continuously appropriated Housing, Homeownership, and Homelessness Prevention Response Fund in the State Treasury, and would direct the Controller to transfer an amount from the General Fund to that fund equal to the above-described estimates. The bill would require the moneys be used for housing purposes, as specified. By establishing a continuously appropriated fund, this bill would make an appropriation. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

Bill Text

Action History

  1. In committee: Held under submission.

  2. Joint Rule 62(a), file notice suspended. (Page 5215.)

  3. In committee: Set, first hearing. Referred to APPR. suspense file.

  4. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 3.) (April 22). Re-referred to Com. on APPR.

  5. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  6. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 7. Noes 2.) (April 17). Re-referred to Com. on REV. & TAX.

  7. Re-referred to Com. on H. & C.D.

  8. From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

  9. Referred to Com. on H. & C.D.

  10. From printer. May be heard in committee February 25.

  11. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 118 not signed on · 5 voted No

Sponsors (1)

Co-sponsors (3)

Not signed on (118)

118 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass and be re-referred to the Committee on [Revenue and Taxation]

Passed 7 Yea · 2 Nay
Party YeaNayPresentNot Voting
Democratic 7000
Republican 0200
Total 7200
% of votes cast 78%22%0%0%
How each member voted (9)
Member Party Vote
Grayson, Timothy S. Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Ward, Christopher M. Democratic Yea
Wilson, Lori D. Democratic Yea
Patterson, Joe Republican Nay
Sanchez, Kate Republican Nay

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Subjects

taxation housing
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Frequently asked questions

What does AB 1932 do?
The Personal Income Tax Law allows various deductions in computing the income that is subject to the taxes imposed by that law, including, in modified conformity with federal income tax laws, a deduction for a limited amount of interest paid on acquisition indebtedness, as defined, with respect to a qualified residence of the taxpayer. Existing law limits the aggregate amount treated as acquisition indebtedness for these purposes to $1,000,000, or $500,000 in the case of a married individual filing a separate return. Existing law specifies for these purposes that a qualified residence includes the taxpayer's principal residence and one other residence selected by the taxpayer, as provided. This bill, for taxable years beginning on or after January 1, 2025, would disallow the deduction of acquisition indebtedness with respect to a qualified residence of a taxpayer other than the principal residence. This bill would require the Franchise Tax Board, in consultation with the Department of Finance, to estimate the amount of additional revenue resulting from the above-described modifications made with respect to the calculation of taxable income under the Personal Income Tax Law by this bill and to notify the Controller of that amount, as provided. The bill would establish the continuously appropriated Housing, Homeownership, and Homelessness Prevention Response Fund in the State Treasury, and would direct the Controller to transfer an amount from the General Fund to that fund equal to the above-described estimates. The bill would require the moneys be used for housing purposes, as specified. By establishing a continuously appropriated fund, this bill would make an appropriation. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.
Who sponsors AB 1932?
AB 1932 is sponsored by Ward, Christopher M. (Democratic), Carrillo, Juan (Democratic), Lee, Alex (Democratic), and Low.
What is the current status of AB 1932?
This bill died with 2023-2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1932?
Track AB 1932 free on One Click Politics — get push/email alerts when it moves.

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