CA AB 2977

Title: Personal Income Tax Law: young child tax credit.
Author: Corey A. Jackson

Summary
AB 2977, as amended, Jackson. Personal Income Tax Law: young child tax credit. The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a young child tax credit to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided. That law also allows a payment from the continuously appropriated Tax Relief and Refund Account for an amount in excess of tax liability. Existing law defines “qualified taxpayer” for this purpose to include an eligible individual, as defined, who has a qualifying child, defined to be a child younger than 6 years of age as of the last day of the taxable year, and who meets other specified criteria. Under existing law, the young child tax credit phases out by reducing the amount of the credit by $20 for each $100, or fraction thereof, that the taxpayer’s earned income, as defined, exceeds a specified amount. This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would instead define a “qualifying child” to mean a child younger than 18 years of age as of the last day of the taxable year. The bill would also require the Franchise Tax Board, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, to recalculate the phaseout provisions for the young child tax credit such that the credit reaches $0 as earned income reaches $50,000. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure.

Status
Re-referred to Com. on APPR.

Bill Documents
CA AB 2977 - 04/24/24 - Amended Assembly
04/24/24 - CA AB 2977 (04/24/24 - Amended Assembly)