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Tax Credit Expansions in the American Rescue Plan
[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.
[PDF] Options for Modifying the State Child Care Tax Credit
April 7, 2016 - The Child and Dependent Care Expenses Credit (“child care tax credit” or “credit”) is a provision of the state income tax code that allows filers with income below $100,000 to reduce their tax liability by a percentage of their eligible child care expenses. The 2015–16 Budget Act required our office to prepare a report providing options to extend the credit to low– and middle–income families not currently receiving child care subsidies. This report provides an analysis of the costs, benefits, and trade–offs associated with these options.
[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
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.
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.
[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.
[PDF] 2022 Update on the California Earned Income Tax Credit
October 3, 2022 - Presented to: Assembly Committee on Revenue and Taxation
[PDF] Major Actions on Tax Provisions
May 31, 2018 - To be present to: Budget Conference Committee
[PDF] Background on the California EITC
March 29, 2016 - Presented to: Assembly Budget Subcommittee No. 4 on State Administration
[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)
[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.
The 2021-22 Spending Plan: Other Provisions
September 23, 2021 - This post discusses features of the state's spending plan that were not covered elsewhere in the 2021-22 Spending Plan series.
The 2019-20 Budget: California Spending Plan—Conformity
October 17, 2019 - This post describes the 2019-20 budget actions changing state individual and business tax provisions (partial tax conformity).
[PDF] Options for a State Earned Income Tax Credit
February 25, 2015 - Presented to Assembly Budget Subcommittee No. 1 on Health and Human Services
The 2019-20 Budget: Tax Conformity
March 6, 2019 - The 2017 federal Tax Cuts and Jobs Act made significant changes to federal tax laws. Generally, the federal tax changes reduced tax rates and broadened the tax base (what is subject to tax). Because the state’s income tax laws closely refer to large portions of federal law, many of those changes created new differences between federal and state taxes. State law currently does not adopt—or conform to—any of the federal changes made in 2017. This report assesses the arguments for and against conforming to ten of those major changes. (Five of these conformity provisions are included in the Governor's proposal.)