20250SB__026797AMD INTRODUCED 2025-02-03 AMENDED_SENATE 2025-03-10 AMENDED_SENATE 2025-05-07 2025 SB AMD Introduced by Senators Choi and Ochoa Bogh (Coauthors: Senators Alvarado-Gil, Ashby, Dahle, Grove, Jones, McNerney, Rubio, Seyarto, and Valladares) (Coauthor: Assembly Member Macedo) LEAD_AUTHOR SENATE Choi LEAD_AUTHOR SENATE Ochoa Bogh COAUTHOR SENATE Alvarado-Gil COAUTHOR SENATE Ashby COAUTHOR SENATE Dahle COAUTHOR SENATE Grove COAUTHOR SENATE Jones COAUTHOR SENATE McNerney COAUTHOR SENATE Rubio COAUTHOR SENATE Seyarto COAUTHOR SENATE Valladares COAUTHOR ASSEMBLY Macedo

An act to add and repeal

Section 17055.2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Personal income tax: credit: qualified teacher: school supplies. The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill would allow a credit against those taxes for taxable years beginning on or after January 1, 2026, and before January 1, 2031, in an amount equal to the unreimbursed amount paid or incurred by a qualified teacher during the taxable year for instructional materials and classroom supplies, as defined, not to exceed $250. The bill would define qualified teacher as a teacher in a public, charter, or private school offering instruction in kindergarten or any of grades to 12, inclusive, for at least hours during a school year.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy. MAJORITY NO YES NO YES NO YES NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 17055.2 is added to the Revenue and Taxation Code , to read: 17055.2. (

a) For taxable years beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed as a credit against the “net tax,” as defined in

Section 17039, an amount equal to the unreimbursed amount paid or incurred by a qualified teacher during the taxable year for instructional materials and classroom supplies, not to exceed two hundred fifty dollars ($250) per taxable year. (

b) For purposes of this section: (1) (A) “Instructional materials and classroom supplies” means books, supplies, computer equipment, including related software, services, and other equipment, and supplementary materials used in the classroom, that are not of a religious nature. (B) “Instructional materials and classroom supplies” does not include nonathletic supplies for courses of instruction in health or physical education. (2) “Qualified teacher” means a teacher in a public, charter, or private school offering instruction in kindergarten or any of grades to 12, inclusive, for at least hours during a school year. (

c) 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 taxable year, and succeeding two years if necessary, until the credit is exhausted. (d)

(1) For the purposes of complying with

Section 41, the Legislature finds and declares that the goals of this credit are both of the following: (

A) To provide relief to teachers until more permanent funding can be provided to furnish classrooms with the needed supplies to make the credit obsolete. (

B) To provide a baseline to determine if education funding is reducing the need for qualified teachers to purchase instructional materials and classroom supplies. (2) (

A) The Franchise Tax Board, no later than December 1, 2027, and annually thereafter, shall submit a report to the Legislature, in compliance with

Section of the Government Code, on the number of taxpayers allowed a credit pursuant to this section, and the total dollar amount of credits allowed. (

B) The disclosure requirements of this paragraph shall be treated as an exception to

Section 19542. (

e) This

section shall remain in effect only until December 1, 2031, and as of that date is repealed.

SEC. 2. This act provides for a tax levy within the meaning of

Article IV of the California Constitution and shall go into immediate effect.