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    SB-529
    Budget & Economy

    Personal income taxes: deduction: California qualified tuition program.

    Introduced
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Establishes new tax deductions for contributions to California's college savings plans starting January 2026.
    • Allows deductions up to $10,000 for joint filers and $5,000 for individual filers with qualifying income limits.
    • Requires taxpayers to repay deductions if withdrawals exceed qualified education expenses.
    • Mandates annual reporting on program effectiveness and new account creation starting July 2027.

    Summary

    Senator Choi's proposal to modify California's tax code would create new deductions for contributions to the state's qualified tuition program, allowing eligible taxpayers to deduct up to $10,000 annually from their gross income starting in 2026. The deduction would apply to direct cash contributions to accounts established under the Golden State Scholarshare Trust Act, with maximum amounts varying by filing status.

    The measure establishes income thresholds for eligibility, capping participation at $150,000 adjusted gross income for joint filers and heads of household, and $75,000 for other filers. These limits would adjust annually for inflation beginning in 2027. The bill requires taxpayers to add previously deducted amounts back to their gross income if distributions exceed qualified higher education expenses, unless those funds are transferred to another California qualified tuition program within 60 days.

    To monitor implementation, the Scholarshare Investment Board would collect data on deduction claims, account openings, and contribution patterns. The board must survey account holders about their motivations for participating and report findings annually to the Legislature starting July 2027. The Franchise Tax Board would receive authority to adopt implementing regulations outside the standard Administrative Procedure Act process.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Revenue and Taxation
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Revenue and Taxation
    Hearing has not been scheduled yet
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Introduced. Read first time. To Com. on RLS. for assignment. To print.
    Senate Floor
    Introduced. Read first time. To Com. on RLS. for assignment. To print.
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Contacts

    Profile
    Brian JonesR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 10 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Brian JonesR
    Senator
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Bill Author
    Profile
    Marie Alvarado-GilD
    Senator
    Bill Author
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Jerry McNerneyD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-1589
    Personal income taxes: deduction: California qualified tuition program.
    February 2023
    Failed
    View Bill
    AB-1026
    Personal income taxes: deduction: California qualified tuition program.
    February 2023
    Failed
    View Bill
    Personal income taxes: deduction: California qualified tuition program.
    February 2022
    Vetoed
    View Bill
    Personal income taxes: deduction: California qualified tuition program.
    January 2019
    Vetoed
    View Bill
    Showing 4 of 4 items
    Page 1 of 1

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Steven Choi
    Steven ChoiR
    California State Senator
    Co-Authors
    Kelly Seyarto
    Kelly SeyartoR
    California State Senator
    Rosilicie Ochoa Bogh
    Rosilicie Ochoa BoghR
    California State Senator
    Brian Jones
    Brian JonesR
    California State Senator
    Marie Alvarado-Gil
    Marie Alvarado-GilD
    California State Senator
    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

    Latest Voting History

    View History
    May 14, 2025
    PASS
    Senate Committee
    Senate Revenue and Taxation Hearing
    AyesNoesNVRTotalResult
    5005PASS

    Key Takeaways

    • Establishes new tax deductions for contributions to California's college savings plans starting January 2026.
    • Allows deductions up to $10,000 for joint filers and $5,000 for individual filers with qualifying income limits.
    • Requires taxpayers to repay deductions if withdrawals exceed qualified education expenses.
    • Mandates annual reporting on program effectiveness and new account creation starting July 2027.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Steven Choi
    Steven ChoiR
    California State Senator
    Co-Authors
    Kelly Seyarto
    Kelly SeyartoR
    California State Senator
    Rosilicie Ochoa Bogh
    Rosilicie Ochoa BoghR
    California State Senator
    Brian Jones
    Brian JonesR
    California State Senator
    Marie Alvarado-Gil
    Marie Alvarado-GilD
    California State Senator

    Summary

    Senator Choi's proposal to modify California's tax code would create new deductions for contributions to the state's qualified tuition program, allowing eligible taxpayers to deduct up to $10,000 annually from their gross income starting in 2026. The deduction would apply to direct cash contributions to accounts established under the Golden State Scholarshare Trust Act, with maximum amounts varying by filing status.

    The measure establishes income thresholds for eligibility, capping participation at $150,000 adjusted gross income for joint filers and heads of household, and $75,000 for other filers. These limits would adjust annually for inflation beginning in 2027. The bill requires taxpayers to add previously deducted amounts back to their gross income if distributions exceed qualified higher education expenses, unless those funds are transferred to another California qualified tuition program within 60 days.

    To monitor implementation, the Scholarshare Investment Board would collect data on deduction claims, account openings, and contribution patterns. The board must survey account holders about their motivations for participating and report findings annually to the Legislature starting July 2027. The Franchise Tax Board would receive authority to adopt implementing regulations outside the standard Administrative Procedure Act process.

    10% progression
    Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Revenue and Taxation
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Revenue and Taxation
    Hearing has not been scheduled yet
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Senate Committee
    Senate Revenue and Taxation Hearing
    Senate Revenue and Taxation Hearing
    Introduced. Read first time. To Com. on RLS. for assignment. To print.
    Senate Floor
    Introduced. Read first time. To Com. on RLS. for assignment. To print.
    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    Latest Voting History

    View History
    May 14, 2025
    PASS
    Senate Committee
    Senate Revenue and Taxation Hearing
    AyesNoesNVRTotalResult
    5005PASS

    Contacts

    Profile
    Brian JonesR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Not Contacted
    Not Contacted
    0 of 10 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Brian JonesR
    Senator
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Bill Author
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Bill Author
    Profile
    Marie Alvarado-GilD
    Senator
    Bill Author
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Jerry McNerneyD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-1589
    Personal income taxes: deduction: California qualified tuition program.
    February 2023
    Failed
    View Bill
    AB-1026
    Personal income taxes: deduction: California qualified tuition program.
    February 2023
    Failed
    View Bill
    Personal income taxes: deduction: California qualified tuition program.
    February 2022
    Vetoed
    View Bill
    Personal income taxes: deduction: California qualified tuition program.
    January 2019
    Vetoed
    View Bill
    Showing 4 of 4 items
    Page 1 of 1