Plain English Breakdown
The official text refers to a calculation for age limits between 2026 and 2038 but does not list the specific ages in this summary.
AB-1690: Young Child Tax Credit Age Limit Changes
This law changes the age limit for children to qualify for a state tax credit, starting in taxable years beginning on or after January 1, 2026.
What This Bill Does
- Changes the definition of a qualifying child from younger than 6 years old to a specified older age for taxable years between 2026 and before 2038.
- Increases the maximum age limit by one year each taxable year during that period based on the prior year's limit.
- Sets the final age limit at younger than 18 years old starting in taxable years beginning on or after January 1, 2038.
- Includes specific goals, performance indicators, and data collection details required for new tax spending.
Who It Names or Affects
- Taxpayers with children who meet the updated age requirements under this bill.
Terms To Know
- Young Child Tax Credit
- A tax credit given to a qualified taxpayer in an amount multiplied by the earned income tax credit adjustment factor, which may include payments from the Tax Relief and Refund Account if it exceeds taxes owed.
- Tax Relief and Refund Account
- A continuously appropriated state fund used to pay amounts of the young child tax credit that are larger than a taxpayer's tax liability.
Limits and Unknowns
- The exact age limit for each year between 2026 and before 2038 is described as 'a specified age' rather than listed as specific numbers in this summary.
- This explanation does not list the other criteria a taxpayer must meet besides having a child of the right age.