Personal Income Tax Law: Corporation Tax Law: credits: student loan payments.

Summary

AB 386 would allow qualifying California businesses to claim a credit of up to $3,000 per full‑time employee for student‑loan payments the employer makes on the employee’s behalf, and would let those payments be excluded from the employee’s taxable income. The credit is limited to $25 million statewide each year, applies only to tax years beginning in 2026 through 2031, and gives priority to veteran‑, women‑, minority‑, disabled‑owned and small employers. The bill did not pass.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Hearings

• Revenue and Taxation Committee Hearing
  Revenue and Taxation · May 5, 2025
• Revenue and Taxation Committee Hearing
  Revenue and Taxation · Mar 17, 2025

History

1. Feb 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. Jan 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 5, 2025In committee: Set, first hearing. Held under submission.
4. Apr 29, 2025Re-referred to Com. on REV. & TAX.
5. Apr 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
6. Mar 17, 2025In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
7. Feb 18, 2025Referred to Com. on REV. & TAX.
8. Feb 4, 2025From printer. May be heard in committee March 6.
9. Feb 3, 2025Read first time. To print.

Sponsors

• Tangipa · sponsor

Bill text

Opens the legislature’s own copy.

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