An act to add and repeal Section 17055.2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
SB 267 would create a temporary California personal income tax credit for qualified teachers who pay out of pocket for classroom needs. For taxable years beginning on or after January 1, 2026, and before January 1, 2031, eligible teachers could claim a credit equal to unreimbursed spending on instructional materials and classroom supplies, capped at $250 per year. The bill defines qualifying expenses broadly to include books, supplies, computer equipment, related software, services, and other classroom equipment, while excluding religious materials and nonathletic supplies for health or physical education courses.
The credit would apply to teachers in public, charter, or private schools serving kindergarten through grade 12, so long as they teach at least 900 hours during the school year. If the credit exceeds a taxpayer’s net tax, the unused amount could be carried forward for up to three additional years. The bill also includes a sunset date, repealing the section on December 1, 2031, and requires the Franchise Tax Board to report annually on the number of taxpayers claiming the credit and the total amount allowed.
SB 267 would add a new section to the Revenue and Taxation Code creating a new personal income tax expenditure for teachers, reducing state tax liability for qualifying out-of-pocket classroom purchases. It would also impose reporting requirements on the Franchise Tax Board and include legislative findings and performance goals to satisfy existing rules governing tax expenditures. Because the bill is designated as a tax levy, it would take effect immediately upon enactment, and its fiscal effect would be limited to the 2026 through 2030 taxable years, with the credit itself repealed in 2031.
The available voting history suggests the bill received favorable committee support, advancing 5-0 in the recorded votes and moving to suspense, which is consistent with a generally positive reception. The bill’s purpose—providing direct tax relief to teachers for classroom expenses—appears to have broad appeal, and the list of coauthors from both parties suggests bipartisan interest. No committee transcript is available, so the record does not show detailed debate or opposition arguments.
The main policy questions likely concern the cost of the credit to the General Fund, the adequacy of the $250 cap, and whether a tax credit is the best way to support classroom funding compared with direct appropriations. Another possible point of contention is eligibility: the bill limits the credit to teachers who meet a 900-hour threshold and excludes certain expenses, which may leave some educators or purchases uncovered. The sunset and reporting provisions indicate an effort to address concerns about accountability and whether the credit should remain in place if broader education funding reduces the need for teachers to spend their own money.