Taxation: Personal Income Tax Law: cost-of-living refundable tax credit.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill creates a cost-of-living refundable tax credit for California residents. Starting in 2027, eligible taxpayers with adjusted gross incomes up to $125,001 can receive a credit ranging from $200 to $700, depending on their income and whether they have dependents. If the credit exceeds the taxpayer’s tax liability, the excess will be paid back to them from a dedicated state fund. The bill also includes provisions to ensure equitable distribution of the credit for married couples filing jointly.
Key provisions
- Establishes a cost-of-living refundable tax credit for California residents.
- The credit amount varies based on adjusted gross income and the number of dependents.
- The credit is available for taxable years beginning in 2027 and ending in 2031.
- Excess credit is paid back to taxpayers from the Tax Relief and Refund Account.
- Requires taxpayers to be California residents for at least six months prior to claiming the credit.
- Excludes refunded credit amounts from gross income.
- Specifies rules for married couples filing jointly regarding credit distribution.
- The bill includes legislative findings and declarations regarding the use of public funds.
Who is affected
- California Taxpayers
- Low- to Middle-Income Households
- Residents of California
- Families with Dependents
- Individuals with Adjusted Gross Income up to $125,001
Bill text
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Sponsors
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1 on record
Primary sponsor
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