Taxation: renter’s credit.

Assembly Member Ta proposes expanding California's renter's tax credit by substantially increasing both credit amounts and income eligibility thresholds. The legislation would raise the current $120 credit to $2,000 for joint filers, heads of household, and surviving spouses with adjusted gross incomes up to $150,000, while other eligible individuals could receive $1,000, up from $60, with incomes up to $75,000.

These enhanced credits would apply for five tax years, beginning when funding is first authorized through the state budget process. The expanded program includes annual inflation adjustments to both credit amounts and income limits. If funding is not specified in the budget for a given year, the existing lower credit amounts and income thresholds would remain in effect.

The bill also makes the increased credits refundable, allowing qualified renters to receive the full amount even if it exceeds their tax liability. The Franchise Tax Board must track and report annually on program participation, including the number of claimants and average credit amounts. These reports will be submitted to legislative budget and tax committees to monitor the program's reach and implementation.

To qualify, individuals must rent and occupy a California residence as their principal home for at least half the tax year. The credit excludes those living in property tax-exempt housing (with certain exceptions), claimed as dependents, or receiving homeowners' property tax exemptions. For joint filers living separately, specific provisions detail how the credit may be divided.