BILL NUMBER: AB 2605	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 7, 2008

INTRODUCED BY   Assembly Member Nakanishi
    (   Coauthors:   Assembly Members 
 Anderson,  Benoit,   DeVore,  
Garrick,   Horton,   Huff,   La Malfa,
  Maze,   and Sharon Runner   ) 
    (   Coauthors:   Senators  
Dutton,   Hollingsworth,   and Runner   )


                        FEBRUARY 22, 2008

   An act to add  and repeal  Section 17053.85  to
  of  the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2605, as amended, Nakanishi. Income taxes: credit: 
private school and home school.   nonpublic school
attendance. 
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would  , for each taxable year beginning on or
after January 1, 2009,  authorize a credit  of
  against that tax for each taxable year beginning on or
after January 1, 2009, and before January 1, 2014, in an amount
equal to  $500 for each dependent of a  qualified 
taxpayer  in grades kindergarten to 12 attending a nonpublic
school   who is exempt from the requirement to attend a
public full-time day school during the taxable year  . 
   This bill also would require the Legislative Analyst's Office to
conduct a study of the effectiveness of the tax credit incentives
authorized by this bill and to report the results to the Legislature.
 
   The provisions of this bill would remain in effect only until
December 1, 2014, and as of that date would be repealed. 
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17053.85 is added to the Revenue and Taxation
Code, to read:
   17053.85.  (a) For each taxable year beginning on or after January
1, 2009,  and before January 1, 2014,  there shall be
allowed as a credit against the "net tax," as defined in Section
17039, an amount equal to five hundred dollars ($500) for each
dependent of  the taxpayer who is attending a qualified
nonpublic school.   a qualified taxpayer who, during the
taxable year, is exempt from the requirements of attendance in a
public full-time day school in accordance with Section 48222, 48223,
or 48224 of the Educ   ation Code.  
   (b) For purposes of this section, "qualified nonpublic school"
means a private primary or secondary school, or a home school, grades
kindergarten to 12, located in this state.  
   (b) For purposes of this section, a "qualified taxpayer" means a
person whose income is less than 400 percent of the poverty
guidelines as updated periodically in the Federal Register by the
United States Department of Health and Human Services under the
authority of Section 9902(2) of Title 42 of the United States Code,
as amended. 
   (c) No credit may be allowed by this section unless the taxpayer
is eligible to claim the child as a dependent on his or her tax
return.
   (d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding years if necessary, until the
credit is exhausted. 
   (e) The Legislative Analyst's Office shall conduct a study on the
effectiveness of the tax credit incentives authorized by this
section. The Legislative Analyst's Office shall report the results of
the study to the Legislature on or before January 1, 2013. 

   (f) This section shall remain in effect only until December 1,
2014, and as of that date is repealed. However, any unused credit may
continue to be carried forward, as provided in subdivision (d),
until the credit is exhausted. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.