AB 704

Bill Subjects

Abstract

(1) The Personal Income Tax Law allows, by way of conformity with deductions allowed under federal income tax law, various deductions in computing the income that is subject to the taxes imposed by the Personal Income Tax Law, including a deduction against gross income for interest paid on qualified education loans not to exceed a specified limit. This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would remove the limit on the deduction described above, as specified. (2) Existing law requires that any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, or tax exemptions contain, among other things, specific goals, purposes, and objectives that the tax expenditure or exemption will achieve, detailed performance indicators, and data collection requirements. This bill would express findings and declarations of the Legislature concerning the additional information required for any bill authorizing a new tax expenditure. The bill would require the Franchise Tax Board to review on an annual basis, beginning on January 1, 2024, the effectiveness of the deduction and to provide an annual written report of its findings to specified legislative committees. (3) This bill would take effect immediately as a tax levy.