California 2023-2024 Regular Session Status: In Committee

AB 509 — Personal income taxes: gross income: exclusion: student loan assistance.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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This bill is no longer active — its legislative session has ended, so there are no live odds of enactment.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

Summary

The Personal Income Tax Law excludes from the gross income of an employee amounts paid or incurred by an employer for educational assistance to the employee, as specified, up to $5,250 during a calendar year. This bill would include in the definition of "educational assistance" a payment made by an employer on or after January 1, 2024, and before January 1, 2026, paid or incurred by the employer, whether paid to the employee or to a lender, of principal or interest on a qualified education loan, as defined, relating to interest on education loans, incurred by the employee for education of the employee. The bill would also make various technical changes to these provisions and delete obsolete language relating to graduate level educational assistance. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. The bill would make specified findings detailing the goals, purposes, and objectives of the above-described exclusion, and the performance indicators for determining whether the exclusion meets those goals, purposes, and objectives. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Held under submission.

  4. Joint Rule 62(a), file notice suspended. (Page 1580.)

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

  6. From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 1). Re-referred to Com. on APPR.

  7. Re-referred to Com. on REV. & TAX.

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

  9. In committee: Set, second hearing. Referred to REV. & TAX. suspense file.

  10. In committee: Set, first hearing. Hearing canceled at the request of author.

  11. Referred to Com. on REV. & TAX.

  12. From printer. May be heard in committee March 10.

  13. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 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

Subjects

taxation education
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Frequently asked questions

What does AB 509 do?
The Personal Income Tax Law excludes from the gross income of an employee amounts paid or incurred by an employer for educational assistance to the employee, as specified, up to $5,250 during a calendar year. This bill would include in the definition of "educational assistance" a payment made by an employer on or after January 1, 2024, and before January 1, 2026, paid or incurred by the employer, whether paid to the employee or to a lender, of principal or interest on a qualified education loan, as defined, relating to interest on education loans, incurred by the employee for education of the employee. The bill would also make various technical changes to these provisions and delete obsolete language relating to graduate level educational assistance. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. The bill would make specified findings detailing the goals, purposes, and objectives of the above-described exclusion, and the performance indicators for determining whether the exclusion meets those goals, purposes, and objectives. This bill would take effect immediately as a tax levy.
Who sponsors AB 509?
AB 509 is sponsored by Vince Fong.
What is the current status of AB 509?
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 509?
Track AB 509 free on One Click Politics — get push/email alerts when it moves.

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