CA SB1374

Allows a tax deduction for cash contributions to California's Golden State Scholarshare College Savings Trust (529 plan) for taxable years beginning before January 1, 2027, capped at $2,000 per beneficiary for heads of household and joint filers, or $1,000 for other filers.

Limits the deduction to qualified taxpayers with adjusted gross incomes not exceeding $200,000 (heads of household, surviving spouses, joint filers) or $100,000 (other filers), with income limits indexed annually for inflation.

Requires taxpayers to add back deducted amounts to gross income in the year distributions exceed qualified higher education expenses, except for amounts transferred to another California qualified tuition program within 60 days.

Makes the deduction operative only for taxable years when an appropriation is made in the annual Budget Act or other statute and automatically repeals the deduction on December 1, 2027.

Requires the Scholarshare Investment Board to collect and report data on deduction usage, new account openings, contribution amounts, and account owner motivations by July 31 of each year the deduction is in effect.