California 2021-2022 Regular Session Status: Passed Assembly

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

Last action — Re-referred to Com. on B. & F.R.

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

This bill died with 2021-2022 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

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. Re-referred to Com. on B. & F.R.

  2. Read second time. Ordered to third reading.

  3. From committee: Do pass. (Ayes 13. Noes 1.) (June 27).

  4. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

  5. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

  6. In committee: Hearing postponed by committee.

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

  8. In Senate. Read first time. To Com. on RLS. for assignment.

  9. Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 18. Page 512.)

  10. Read second time. Ordered to third reading.

  11. Ordered to second reading.

  12. Withdrawn from committee.

  13. Assembly Rule 96 suspended. (Ayes 53. Noes 17. Page 432.)

  14. Re-referred to Com. on BUDGET.

  15. From committee chair, with author's amendments: Amend, and re-refer to Com. on BUDGET. Read second time and amended.

  16. Referred to Com. on BUDGET.

  17. Read first time.

  18. From printer. May be heard in committee February 9.

  19. Introduced. To print.

Sponsors

  • Committee on Budget · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 11 voted No

Sponsors (1)

  • Committee on Budget

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

Do pass

Passed 13 Yea · 1 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 7102
Democratic 5001
Republican 1002
Total 13105
% of votes cast 68%5%0%26%
How each member voted (19)
Member Party Vote
Wieckowski — Yea
Pan — Yea
Skinner — Yea
Min — Yea
Kamlager — Yea
Eggman — Yea
Newman — Yea
Nielsen — Nay
Melendez — Not Voting
Roth — Not Voting
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

AB 201 BUDGET Assembly Third Reading By TING

Passed 56 Yea · 18 Nay · 5 Other
Party YeaNayPresentNot Voting
Democratic 25200
Unaffiliated 31704
Republican 0901
Total 561805
% of votes cast 71%23%0%6%
How each member voted (79)
Member Party Vote
Bloom — Yea
Friedman — Yea
Cooley — Yea
Chiu — Yea
Rendon — Yea
Mullin — Yea
Holden — Yea
Villapudua — Yea
Salas — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Wood — Yea
Nazarian — Yea
Ting — Yea
Low — Yea
O'Donnell — Yea
Levine — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Gray — Yea
Burke — Yea
Cooper — Yea
Chau — Yea
Smith — Nay
Voepel — Nay
Waldron — Nay
Cunningham — Nay
Kiley — Nay
Mathis — Nay
Bigelow — Nay
Kamlager — Not Voting
Quirk — Not Voting
Mayes — Not Voting
Frazier — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Luz Rivas — Yea
Mark Stone — Yea
Aguiar-Curry, Cecilia M. 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
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Nay
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Nay
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
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Dahle, Megan Republican Nay
Davies, Laurie Republican Nay
Flora, Heath Republican Nay
Gallagher, James Republican Nay
Lackey, Tom Republican Nay
Patterson, Joe Republican Nay
Seyarto, Kelly Republican Nay
Valladares, Suzette Martinez Republican Not Voting

Official roll call →

Subjects

taxation
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Frequently asked questions

What does AB 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 AB 201?
AB 201 is sponsored by Committee on Budget.
What is the current status of AB 201?
This bill died with 2021-2022 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 201?
Track AB 201 free on One Click Politics — get push/email alerts when it moves.

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