Personal income tax: Earned Income Tax Credit.
- Establishes a minimum $355 California Earned Income Tax Credit for eligible taxpayers starting in 2025.
- Expands tax credit eligibility to include undocumented workers who meet qualifying criteria.
- Phases out the credit gradually as income increases, with thresholds rising from $15,000 to $28,000 by 2027.
- Requires annual reporting on how the tax credit impacts poverty reduction among California families.
Assembly Member Ahrens proposes substantial changes to California's Earned Income Tax Credit (EITC) program that would establish a minimum credit amount of $355 for eligible individuals whose calculated credit falls below that threshold. The legislation modifies Section 17052 of the Revenue and Taxation Code to create this credit floor beginning in tax year 2025.
The bill implements a graduated phase-out system based on income thresholds that increase over time. For the 2025 tax year, the credit begins phasing out at $15,000 of earned income, rising to $20,000 in 2026 and $28,000 in 2027. Starting in 2028, these thresholds would be adjusted annually using the same method as income tax bracket calculations. The phase-out reduces the credit amount for each $100 of income above the threshold until it reaches zero.
To track the policy's implementation, the Franchise Tax Board must expand its annual EITC reporting to include separate analyses of credit distribution and poverty reduction impacts with and without the new minimum credit provision. The legislation authorizes additional payments from the Tax Relief and Refund Account to fund the increased credit amounts.
 Joaquin ArambulaD Assemblymember | Committee Member |  Not Contacted | |
 Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
 Lisa CalderonD Assemblymember | Committee Member | Not Contacted | |
 Mike FongD Assemblymember | Committee Member | Not Contacted | |
 Diane DixonR Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 5 | 1 | 1 | 7 | PASS |
- Establishes a minimum $355 California Earned Income Tax Credit for eligible taxpayers starting in 2025.
- Expands tax credit eligibility to include undocumented workers who meet qualifying criteria.
- Phases out the credit gradually as income increases, with thresholds rising from $15,000 to $28,000 by 2027.
- Requires annual reporting on how the tax credit impacts poverty reduction among California families.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member Ahrens proposes substantial changes to California's Earned Income Tax Credit (EITC) program that would establish a minimum credit amount of $355 for eligible individuals whose calculated credit falls below that threshold. The legislation modifies Section 17052 of the Revenue and Taxation Code to create this credit floor beginning in tax year 2025.
The bill implements a graduated phase-out system based on income thresholds that increase over time. For the 2025 tax year, the credit begins phasing out at $15,000 of earned income, rising to $20,000 in 2026 and $28,000 in 2027. Starting in 2028, these thresholds would be adjusted annually using the same method as income tax bracket calculations. The phase-out reduces the credit amount for each $100 of income above the threshold until it reaches zero.
To track the policy's implementation, the Franchise Tax Board must expand its annual EITC reporting to include separate analyses of credit distribution and poverty reduction impacts with and without the new minimum credit provision. The legislation authorizes additional payments from the Tax Relief and Refund Account to fund the increased credit amounts.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 5 | 1 | 1 | 7 | PASS |
Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
Lisa CalderonD Assemblymember | Committee Member | Not Contacted | |
Mike FongD Assemblymember | Committee Member | Not Contacted | |
Diane DixonR Assemblymember | Committee Member | Not Contacted |