Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateCaliforniaTo Governor
SB 1374: Personal income taxes: deduction: California qualified tuition program.
Unknown Sponsor
SB 1374 status: To Governor — In Senate. Consideration of Governor's veto pending (updated Sep 28, 2022).
Source
LegiScan
Confidence
High
Analysis basis
LegiScan full bill text
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
75OUT OF 100
Score:75/100 civic fit
Risk:Low Risk
Impact:Moderate Impact 65/100
Constitutionality95%
Bipartisan70%
Public opinion85%
Bill summary
What changes
Creates a state income tax deduction for contributions made to the Golden State Scholarshare College Savings Trust.
Who is affected
California taxpayers with adjusted gross incomes below $200,000 (joint/head of household) or $100,000 (others).
Requirements and enforcement
Taxpayers must contribute cash to the trust and maintain documentation for the Franchise Tax Board.
Costs and funding
Reduces state tax revenue; amount depends on participation and annual legislative appropriations.
When it takes effect
Operative only for tax years before 2027, contingent upon annual funding.
Potential benefits
Provides tax savings to families for college tuition; aims to reduce student debt reliance.
Risks and tradeoffs
Funding is not guaranteed; complex record-keeping; potential for tax benefits to favor higher earners.
What is still unknown
The total fiscal impact is unknown until enrollment numbers are finalized post-appropriation.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
75%
Benefits
- Incentivizes private saving for higher education costs.
- Reduces future reliance on student loans for participants.
- Provides tax relief to middle-income families.
Risks
- Reduces state tax revenue base.
- Compliance costs for individual taxpayers tracking deductions.
- Administrative costs for the Franchise Tax Board.
Society
Positive outlook
80%
Benefits
- Increases access to post-secondary education through financial planning.
- Promotes intergenerational wealth and education mobility.
- Reduces the aggregate debt burden on California students.
Risks
- Benefits limited to those with existing liquid cash for contributions.
- May not effectively reach the most economically vulnerable populations.
- Tax deductions provide less relative relief than direct subsidies.
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
Positive outlook
70%
Benefits
- Requires explicit legislative goals and performance indicators for the tax expenditure.
- Mandates annual reporting to the Legislature by the Scholarshare Investment Board.
- Requires data collection on account creation and taxpayer income.
Risks
- Exempts the Franchise Tax Board from the Administrative Procedure Act for implementation.
- Reliance on future annual budget appropriations makes the benefit conditional.
- Data collection relies on potential taxpayer self-reporting accuracy.
Public Health & Safety
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
LegiScan
Official bill text or data from LegiScan.
Confidence
High
Information is complete and verified.
Analysis basis
LegiScan full bill text
Source used for this bill's analysis.
Source note
The benefit is only operative if the annual state budget specifically appropriates funds for its administration.
Analysis scope
The tax deduction is contingent upon future budget appropriations, making the benefit uncertain.
04
Where it stands
Official record- IntroducedComplete
- CommitteeComplete
- Chamber votesComplete
- Final agreementComplete
- GovernorCurrent
- EnactedUpcoming
05
How it affects your district
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06
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