California 2021-2022 Regular Session Status: Enacted

SB 201 — Taxation: Earned Income Tax Credit: Young Child Tax Credit: Foster Youth Tax Credit.

Last action — Chaptered by Secretary of State. Chapter 72, Statutes of 2022.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 08, 2021. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) 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 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 0. Existing law allows a payment to an eligible individual from the Tax Relief and Refund Account, a continuously appropriated fund, for any amount of the credit in excess of tax liability, as provided. This bill, for taxable years after the taxable year in which the minimum wage is set at $15 per hour, would require the phaseout percentages for the prior taxable year to apply. This bill, for taxable years beginning on or after January 1, 2022, would allow foster care tax credit against personal income tax in a specified amount for a qualified taxpayer, defined as a person who has been allowed an earned income tax credit for the taxable year, was in foster care, as provided, and is between 18 to 25, inclusive, years of age. The bill would authorize a payment from the Tax Relief and Refund Account for any amount of the credit in excess of tax liability. By authorizing an additional payment from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation. Existing law prohibits a person from publishing or disclosing, or permitting the publication or disclosure of, a list of persons receiving public social services and limits the use of the lists to purposes directly connected with the administration of public social services. Existing law generally makes it a misdemeanor for specified persons, including, among others, officers or employees of the state or its political subdivisions, to disclose information set forth or disclosed in returns, reports, or documents required to be filed under the franchise and income tax laws. This bill would make exceptions to the state law prohibitions against sharing information on persons receiving public social services or tax information for the limited purposes of administering the foster youth credit described above. The bill would require the State Department of Social Services to seek any federal approval necessary to implement this exception. (2) The Personal Income Tax Law allows a young child tax credit against the taxes imposed under that law and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided. Existing law defines "qualified taxpayer" for this purpose to include an eligible individual who has a qualified child, as defined, and is allowed an earned income tax credit, as specified. This bill would expand the definition of "qualified taxpayer" to also include an eligible individual who has a qualified child and would have received an earned income tax credit but for the fact that the individual has earned income, as defined, of $0 or less for the taxable year. The bill would also require the amount of the young child tax credit to be recomputed annually in the same manner as the recomputation of income tax brackets, as specified. By authorizing new payments from the Tax Relief and Refund Account in excess of personal income tax liabilities, and by increasing the amount of moneys paid from the account, the bill would make an appropriation. (3) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. (4) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. (5) This bill would also make findings and declarations related to a gift of public funds. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 72, Statutes of 2022.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 10:10 a.m.

  4. Assembly amendments concurred in. (Ayes 33. Noes 0. Page 4540.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 75. Noes 0. Page 5604.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. Ordered to second reading.

  9. Withdrawn from committee.

  10. (Ayes 57. Noes 18. Page 5550.)

  11. Assembly Rules suspended.

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  13. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  14. (Corrected May 14).

  15. Referred to Com. on BUDGET.

  16. In Assembly. Read first time. Held at Desk.

  17. Read third time. Passed. (Ayes 29. Noes 8. Page 302.) Ordered to the Assembly.

  18. Read second time. Ordered to third reading.

  19. Ordered to second reading.

  20. Withdrawn from committee. (Ayes 26. Noes 5. Page 201.)

  21. Referred to Com. on B. & F.R.

  22. Read first time.

  23. From printer. May be acted upon on or after February 10.

  24. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 4 voted No

Sponsors (1)

  • Committee on Budget and Fiscal Review

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.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 201 B. & F. R. Senate Third Reading By TING

Passed 75 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Democratic 32000
Unaffiliated 36003
Republican 7002
Total 75005
% of votes cast 94%0%0%6%
How each member voted (80)
Member Party Vote
Bloom — Yea
Friedman — Yea
Voepel — Yea
Cooley — Yea
Mathis — Yea
Rendon — Yea
Mullin — Yea
Holden — Yea
Villapudua — Yea
Salas — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Quirk — Yea
Wood — Yea
Kiley — Yea
Mayes — Yea
Nazarian — Yea
Ting — Yea
Low — Yea
Levine — Yea
O'Donnell — Yea
Waldron — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Gray — Yea
Cooper — Yea
Smith — Not Voting
Cunningham — Not Voting
Bigelow — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Not Voting
Seyarto, Kelly Republican Not Voting
Valladares, Suzette Martinez Republican Yea

Official roll call →

Unfinished Business SB201 B. & F.R. (Skinner) Concurrence

Passed 33 Yea · 0 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 19004
Democratic 12001
Republican 2002
Total 33007
% of votes cast 83%0%0%18%
How each member voted (40)
Member Party Vote
Bates — Yea
Newman — Yea
Eggman — Yea
Hueso — Yea
Skinner — Yea
Leyva — Yea
Atkins — Yea
Nielsen — Yea
Dodd — Yea
Rubio — Yea
Pan — Yea
Roth — Yea
Hertzberg — Yea
Wilk — Yea
Kamlager — Yea
Min — Yea
Wieckowski — Yea
Bradford — Yea
Portantino — Yea
Gonzalez — Not Voting
Glazer — Not Voting
Melendez — Not Voting
Borgeas — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Not Voting
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Yea
Jones, Brian W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

3rd Reading SB201

Passed 29 Yea · 8 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 17401
Democratic 12001
Republican 0400
Total 29802
% of votes cast 74%21%0%5%
How each member voted (39)
Member Party Vote
Skinner — Yea
Roth — Yea
Wieckowski — Yea
Atkins — Yea
Portantino — Yea
Glazer — Yea
Dodd — Yea
Rubio — Yea
Bradford — Yea
Min — Yea
Eggman — Yea
Hertzberg — Yea
Pan — Yea
Hueso — Yea
Newman — Yea
Gonzalez — Yea
Wilk — Nay
Nielsen — Nay
Bates — Nay
Melendez — Nay
Borgeas — Not Voting
Leyva — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Ochoa Bogh, Rosilicie Republican Nay

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 201 do?
(1) 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 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 0. Existing law allows a payment to an eligible individual from the Tax Relief and Refund Account, a continuously appropriated fund, for any amount of the credit in excess of tax liability, as provided. This bill, for taxable years after the taxable year in which the minimum wage is set at $15 per hour, would require the phaseout percentages for the prior taxable year to apply. This bill, for taxable years beginning on or after January 1, 2022, would allow foster care tax credit against personal income tax in a specified amount for a qualified taxpayer, defined as a person who has been allowed an earned income tax credit for the taxable year, was in foster care, as provided, and is between 18 to 25, inclusive, years of age. The bill would authorize a payment from the Tax Relief and Refund Account for any amount of the credit in excess of tax liability. By authorizing an additional payment from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation. Existing law prohibits a person from publishing or disclosing, or permitting the publication or disclosure of, a list of persons receiving public social services and limits the use of the lists to purposes directly connected with the administration of public social services. Existing law generally makes it a misdemeanor for specified persons, including, among others, officers or employees of the state or its political subdivisions, to disclose information set forth or disclosed in returns, reports, or documents required to be filed under the franchise and income tax laws. This bill would make exceptions to the state law prohibitions against sharing information on persons receiving public social services or tax information for the limited purposes of administering the foster youth credit described above. The bill would require the State Department of Social Services to seek any federal approval necessary to implement this exception. (2) The Personal Income Tax Law allows a young child tax credit against the taxes imposed under that law and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided. Existing law defines "qualified taxpayer" for this purpose to include an eligible individual who has a qualified child, as defined, and is allowed an earned income tax credit, as specified. This bill would expand the definition of "qualified taxpayer" to also include an eligible individual who has a qualified child and would have received an earned income tax credit but for the fact that the individual has earned income, as defined, of $0 or less for the taxable year. The bill would also require the amount of the young child tax credit to be recomputed annually in the same manner as the recomputation of income tax brackets, as specified. By authorizing new payments from the Tax Relief and Refund Account in excess of personal income tax liabilities, and by increasing the amount of moneys paid from the account, the bill would make an appropriation. (3) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure. (4) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. (5) This bill would also make findings and declarations related to a gift of public funds. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Who sponsors SB 201?
SB 201 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 201?
This bill has been enacted into law. Introduced January 08, 2021. Enacted.
Where can I track SB 201?
Track SB 201 free on One Click Politics — get push/email alerts when it moves.

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