The Personal Income Tax Law, in modified conformity with federal income tax law, allows an earned income tax credit against the taxes imposed under that law to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified, and allows a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability.
The Personal Income Tax Law also allows a young child tax credit against the taxes imposed under that law to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, and allows a payment from the 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.
This bill would remove the requirement that a qualifying child has to be younger than 6 years of age as of the last day of the taxable year. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation.
Statutes affected: AB1128: 17052.1 RTC
02/15/23 - Introduced: 17052.1 RTC
04/12/23 - Amended Assembly: 17052.1 RTC
AB 1128: 17052.1 RTC