CA AB340

Expands the definition of "qualified higher education expenses" under the Golden State Scholarshare Trust Act to include expenses for registered apprenticeship programs and payments on qualified education loan principal or interest.

Conforms California state tax law to federal changes made by the Further Consolidated Appropriations Act, 2020, regarding qualified higher education expenses under Internal Revenue Code Section 529.

Allows distributions from qualified tuition programs for registered apprenticeship program expenses and education loan repayments to be excluded from gross income for taxable years beginning January 1, 2021 or later.

Applies federal coordination rules regarding the deduction for student loan interest to California tax law effective for taxable years beginning January 1, 2021 or later.