AB-1428 • 2026

California Affordable Childcare Act: Personal Income Tax and Corporation Tax.

Budget Children Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Muratsuchi
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The official source does not specify that a two-thirds vote is required, but it implies this requirement based on constitutional provisions.

California Affordable Childcare Act: Taxes to Help Childcare

This act creates a new tax for people and companies with high incomes in California, which will fund grants for licensed childcare facilities.

What This Bill Does

Adds a new tax of 0.5% on income over $10 million for individuals and corporations starting from January 1, 2026, until December 31, 2030.
Creates the California Affordable Child Care Fund in the state treasury to collect these taxes.
Uses money from this fund to give grants to licensed childcare facilities.

Who It Names or Affects

People and companies with income over $10 million in California.
Licensed childcare facilities that can apply for grants.

Terms To Know

Taxable Year: A period of time, usually one year, used to calculate how much tax a person or company owes.
Grant Program: A program where the government gives money to organizations for specific purposes without expecting repayment.

Limits and Unknowns

The bill only applies from January 1, 2026, until December 31, 2030.
It is not clear how much money will be collected or how many childcare facilities will benefit.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-04-28 California Legislative Information
In committee: Set, second hearing. Hearing canceled at the request of author.
2025-04-21 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2025-04-10 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-09 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-01 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-03-28 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1428, as amended, Muratsuchi.
California Affordable Childcare Act: Personal Income Tax and Corporation Tax.
The Personal Income Tax Law and the Corporation Tax Law impose taxes according to, or measured by, income derived from or attributable to sources within this state.
This bill,
for taxable years beginning on or after January 1, 2026, and before January 1, 2031,
in addition to any other taxes imposed by those laws, would impose a tax at a rate of
0.05%
0.5%
on that portion of income in excess of $10,000,000 during the taxable
year.
year, except as provided.
The bill would establish the California Affordable Child Care Fund in the State Treasury and would direct all revenues, less reimbursement to the Franchise Tax Board for the administration of the additional tax, to be deposited into that fund. The bill would continuously appropriate the moneys in the fund to the State Treasurer for the purpose of establishing a grant program for licensed child care facilities, as described. By establishing a new continuously appropriated fund, this bill would make an appropriation.
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 XIII A of the California Constitution, and thus would require for passage the approval of
2
/
3
of the membership of
each house of the Legislature.

Current Bill Text

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