Back to the Report

More publications like . . .

Options for Modifying the State Child Care Tax Credit


Report

[PDF] The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion

March 6, 2019 - The state adopted an EITC in 2015 and expanded it in 2017 and 2018. The Governor proposes another expansion starting in 2019 that would (1) extend the income eligibility range to $30,000, (2) increase the credit amount for workers with dependents under age six, and (3) increase the credit amount for workers with earnings at the higher end of the current eligibility range. This report evaluates the Governor’s proposal, discusses potential alternative approaches, and examines implementation issues and options for providing credits on a monthly basis.

Report

[PDF] Options for a State Earned Income Tax Credit

December 18, 2014 - In June 2014, the Legislature directed the LAO to prepare a report analyzing the costs, benefits, and trade-offs of various options for a state earned income tax credit (EITC) that would supplement the federal credit. This report discusses considerations for adopting a state EITC and provides three options for the Legislature's consideration.

Post

The 2018-19 Budget: California Earned Income Tax Credit Education and Outreach

May 8, 2018 - This post explains a grant program that provided funds for education and outreach related to the state earned income tax credit (EITC) and provides comments on how the Legislature might prioritize any future state-funded EITC outreach activities.

Post

Tax Credit Expansions in the American Rescue Plan

April 13, 2021 - The federal American Rescue Plan (ARP) that passed on March 11 expanded a number of federal income tax credits. This piece will briefly describe the changes to three credits that apply to many lower-income and middle-income filers: the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the Child and Dependent Care Expenses Credit (“child care credit”). We also discuss changes to the dependent care exclusion which is linked to the child care credit.

Handout

[PDF] Background on the California Earned Income Tax Credit

April 11, 2019 - Presented to Senate Budget and Fiscal Review Committee Subcommittee 4 on State Administration and General Government

Post

The 2018-19 Budget: The May Revision—State Earned Income Tax Credit Expansion

May 14, 2018 - The 2018-19 May Revision proposes to expand the state’s Earned Income Tax Credit. In this post, we describe and comment on the proposal.

Handout

[PDF] The 2021-22 Budget: Golden State Stimulus

January 26, 2021 - Presented to: Senate Budget and Fiscal Review Subcommittee No. 4 On State Administration and General Government (Hon. Anna M. Caballero, Chair)

Handout

[PDF] Funding and Implementing Individual Health Insurance Market Affordability Policies

February 12, 2019 - Presented to: Assembly Health Committee, Assembly Budget Subcommittee No. 1 on Health and Human Services, Senate Committee on Health, and Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services

Handout

[PDF] Housing-Related Tax Expenditure Programs

March 18, 2013 - Presented to Assembly Revenue and Taxation, and Housing and Community Development Committees

Handout

[PDF] Background on the California EITC

March 29, 2016 - Presented to: Assembly Budget Subcommittee No. 4 on State Administration

Handout

[PDF] The 2021-22 Budget: Golden State Stimulus

January 22, 2021 - This handout provides an overview of the Governor's budget proposal to provide a one-time $600 refund to certain low-income workers, evaluates the Governor's proposal, and provides a more targeted alternative for the Legislature to consider.

Report

[PDF] The 2011-12 Budget: California Community College Fees

January 27, 2011 - The Governor proposes to increase California Community College (CCC) fees from $26 per unit to $36 per unit beginning on July 2011. We believe that a fee increase should be an important component of the state’s budget strategy for CCC, as it would leverage more federal funds (in the form of federal tax credits) to mitigate programmatic impacts on CCC instruction and services, while having no negative effect on financially needy students (who do not pay fees). While the Governor is on the right track, the Legislature might consider going even further in the budget year to tap additional federal dollars in support of the CCC system. In future years, we recommend the Legislature ensure that CCC fee levels are pegged to the maximum amount covered by federal tax credits.