AB 2444: Personal Income Tax Law: qualified tuition program.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing law, known as the Golden State Scholarshare Trust Act, establishes the Golden State Scholarshare College Savings Trust (Scholarshare trust), under the administration of the Scholarshare Investment Board, to provide financial aid for postsecondary education costs of participating students. Existing state and federal law generally includes in gross income distributions from a qualified tuition program, as defined to include the Scholarshare trust, except as provided.

Existing federal law, the Consolidated Appropriations Act, 2023, excludes from gross income, for federal income tax purposes, distributions from a qualified tuition program that are made after December 31, 2023, and are paid in a direct trustee-to-trustee transfer to a Roth IRA, as described.

The Personal Income Tax Law generally conforms to federal income tax law relating to qualified state tuition programs, except as specified. Among those exceptions, existing state law does not conform to the above-described exclusion for distributions from a qualified tuition program.

This bill would instead conform to that federal exclusion for taxable years beginning on or after January 1, 2026, and before January 1, 2031.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in calculating adjusted gross income.

This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a deduction in determining adjusted gross income for contributions to a Scholarshare account by a qualified taxpayer, as specified.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026In committee: Held under submission.
2. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
3. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
4. April 28, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 27). Re-referred to Com. on APPR.
5. April 14, 2026Re-referred to Com. on REV. & TAX.
6. April 13, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
7. April 6, 2026In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
8. March 9, 2026Referred to Com. on REV. & TAX.
9. February 21, 2026From printer. May be heard in committee March 23.
10. February 20, 2026Read first time. To print.