Personal Income Tax Law: deduction: teachers.

Assembly Member Hadwick's proposal to align California's tax treatment of teacher expenses with federal standards would allow elementary and secondary school teachers to deduct certain classroom and professional development costs from their state taxes between 2026 and 2031. The measure modifies Section 17072 of the Revenue and Taxation Code, which currently excludes these educator expense deductions despite broader conformity with federal adjusted gross income calculations.

The bill requires the Franchise Tax Board to track the number of teachers claiming the deduction, average deduction amounts, and types of expenses claimed. According to the legislative findings, this data collection aims to verify that the deduction aligns with federal requirements while supporting teachers who purchase classroom materials. The measure maintains California's existing non-conformity with federal deductions for whistleblower attorney fees.

As a tax levy, the legislation would take effect immediately upon enactment, though the actual deductions would not begin until the 2026 tax year. The five-year authorization period provides an opportunity to evaluate usage patterns and impacts before the provision's scheduled sunset in 2031.