California 2021-2022 Regular Session Status: In Committee

AB 2018 — Personal Income Tax Law: refundable credit: student loan debt.

Last action — In committee: Set, first hearing. Hearing canceled at the request of author.

  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 2021-2022 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 credits against the taxes imposed by that law. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount to be paid as a refundable tax credit in excess of any tax liabilities. This bill would, for the taxable year beginning on or after January 1, 2022, and before January 1, 2023, allow a credit against those taxes for a qualified taxpayer in a specified amount. The bill would define "qualified taxpayer" for this purpose to mean a taxpayer with a degree from a university headquartered in the state who has worked in public service, as defined, for at least 5 years, and who has at least $5,000 in federal student loan debt, as defined. The bill would provide the amount of the credit would be equal to the lesser of the federal student loan debt of the qualified taxpayer or $10,000. This bill would require the amount of the credit exceeding the taxpayer's liability to be credited against other amounts due, if any, and would require the balance, upon appropriation by the Legislature, to be paid from the Tax Relief and Refund Account and refunded to the taxpayer. 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. This bill would require the Franchise Tax Board to submit, on or before January 10, 2024, a report to the Legislature on the number of qualified taxpayers allowed the credit and the total dollar value of credits allowed. The bill would provide findings and declarations relating to the goals, purposes, and objectives of the tax credit. This bill would take effect immediately as a tax levy.

Bill Text

Action History

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

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

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

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

  5. From printer. May be heard in committee March 17.

  6. Read first time. To print.

Sponsors

  • Santiago · Primary

Sponsorship breakdown

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

Sponsors (1)

  • Santiago

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 2018 do?
The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount to be paid as a refundable tax credit in excess of any tax liabilities. This bill would, for the taxable year beginning on or after January 1, 2022, and before January 1, 2023, allow a credit against those taxes for a qualified taxpayer in a specified amount. The bill would define "qualified taxpayer" for this purpose to mean a taxpayer with a degree from a university headquartered in the state who has worked in public service, as defined, for at least 5 years, and who has at least $5,000 in federal student loan debt, as defined. The bill would provide the amount of the credit would be equal to the lesser of the federal student loan debt of the qualified taxpayer or $10,000. This bill would require the amount of the credit exceeding the taxpayer's liability to be credited against other amounts due, if any, and would require the balance, upon appropriation by the Legislature, to be paid from the Tax Relief and Refund Account and refunded to the taxpayer. 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. This bill would require the Franchise Tax Board to submit, on or before January 10, 2024, a report to the Legislature on the number of qualified taxpayers allowed the credit and the total dollar value of credits allowed. The bill would provide findings and declarations relating to the goals, purposes, and objectives of the tax credit. This bill would take effect immediately as a tax levy.
Who sponsors AB 2018?
AB 2018 is sponsored by Santiago.
What is the current status of AB 2018?
This bill died with 2021-2022 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 2018?
Track AB 2018 free on One Click Politics — get push/email alerts when it moves.

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