AB 398 — Personal income tax: Earned Income Tax Credit.
Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
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✓Introduced
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2In Committee
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3Passed Assembly
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4Passed Senate
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5To Executive
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6Enacted
This bill is in committee in the Assembly. Introduced February 04, 2025. It must pass committee before a floor vote.
Next likely step: a committee vote, then a floor vote in the Assembly.
Odds of enactment
Low chanceBased on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.
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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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In Committee
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (1 D).
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Cleared a recorded vote
Passed 1 recorded vote so far.
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Summary
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows an earned income tax credit against personal income tax and a payment from the Tax Relief and Refund Account, a continuously appropriated fund, for an allowable credit in excess of tax liability 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. The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases, and provides alternative calculation factors under specified circumstances. Existing law, for taxable years beginning on or after January 1, 2020, and until and including the taxable year in which the minimum wage is set at $15 per hour, requires the phaseout percentage for eligible individuals to be recalculated by the Franchise Tax Board so that the calculated amount of credit for a taxpayer with an earned income of $30,000 is equal to zero. This bill, for taxable years beginning on or after January 1, 2025, if the amount of credit computed for an eligible individual is less than $355, as specified, would allow the credit for the eligible individual to be $355 instead, except as otherwise specified. By authorizing additional payments from a continuously appropriated account, this 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 also would include additional information required for any bill authorizing a new tax expenditure.
Bill Text
What changed in the latest version
1 added · 1 removedPlain-language change summary
The latest version of Bill AB 398 has made a small but important change by adding new text that clarifies existing provisions. This update aims to improve understanding and implementation of the bill, ensuring that everyone knows the rules. It matters because clearer language helps prevent confusion and ensures that the intent of the legislation is followed properly.
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View plain text versions (2)
- Introduced 02/04/25 - Introduced Current pdf February 04, 2025
- AB398 View text html
Action History
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From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
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Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
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In committee: Held under submission.
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Joint Rule 62(a), file notice suspended. (Page 1627.)
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In committee: Set, first hearing. Referred to APPR. suspense file.
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In committee: Hearing postponed by committee.
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From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 28). Re-referred to Com. on APPR.
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In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
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Referred to Com. on REV. & TAX.
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From printer. May be heard in committee March 7.
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Read first time. To print.
Sponsors
- Patrick Ahrens · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No
Sponsors (1)
- Ahrens, Patrick Democratic
Co-sponsors (0)
None.
Not signed on (121)
121 members have not signed on to this bill.
Show all 121 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Democratic | 5 | 0 | 0 | 0 |
| Republican | 0 | 1 | 0 | 1 |
| Total | 5 | 1 | 0 | 1 |
| % of votes cast | 71% | 14% | 0% | 14% |
How each member voted (7)
| Member | Party | Vote |
|---|---|---|
| Bains, Jasmeet | Democratic | Yea |
| Garcia, Robert | Democratic | Yea |
| Gipson, Mike A. | Democratic | Yea |
| McKinnor, Tina | Democratic | Yea |
| Quirk-Silva, Sharon | Democratic | Yea |
| DeMaio, Carl | Republican | Nay |
| Ta, Tri | Republican | Not Voting |
Subjects
Frequently asked questions
- What does AB 398 do?
- The Personal Income Tax Law, in modified conformity with federal income tax laws, allows an earned income tax credit against personal income tax and a payment from the Tax Relief and Refund Account, a continuously appropriated fund, for an allowable credit in excess of tax liability 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. The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases, and provides alternative calculation factors under specified circumstances. Existing law, for taxable years beginning on or after January 1, 2020, and until and including the taxable year in which the minimum wage is set at $15 per hour, requires the phaseout percentage for eligible individuals to be recalculated by the Franchise Tax Board so that the calculated amount of credit for a taxpayer with an earned income of $30,000 is equal to zero. This bill, for taxable years beginning on or after January 1, 2025, if the amount of credit computed for an eligible individual is less than $355, as specified, would allow the credit for the eligible individual to be $355 instead, except as otherwise specified. By authorizing additional payments from a continuously appropriated account, this 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 also would include additional information required for any bill authorizing a new tax expenditure.
- Who sponsors AB 398?
- AB 398 is sponsored by Ahrens, Patrick (Democratic).
- What is the current status of AB 398?
- This bill is in committee in the Assembly. Introduced February 04, 2025. It must pass committee before a floor vote.
- Where can I track AB 398?
- Track AB 398 free on One Click Politics — get push/email alerts when it moves.
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Last checked for changes 3 months ago · updated continuously
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