Plain English Breakdown
The official text states the bill takes effect immediately as a tax levy but does not specify an exact effective date beyond the taxable year range.
Childcare Tax Credit for Individuals and Corporations
AB-2673 creates a temporary tax credit equal to 50% of qualified contributions made to promote childcare, with a maximum limit of $100,000 per year.
What This Bill Does
- Creates a new tax credit under the Personal Income Tax Law and Corporation Tax Law for taxable years starting between January 1, 2027, and December 31, 2031.
- Allows taxpayers to claim an amount equal to 50% of qualified contributions made to promote childcare.
- Sets a maximum limit on the total credit at $100,000 per year as specified in the bill.
- Includes findings and reporting requirements that meet existing laws regarding tax expenditures.
Who It Names or Affects
- Taxpayers subject to California's Personal Income Tax Law or Corporation Tax Law who make qualified contributions to promote childcare.
Terms To Know
- Qualified contributions
- Contributions made to promote childcare that meet the specific rules defined in this bill, though those exact details are not listed here.
- Tax credit
- An amount subtracted directly from the total tax a person or business owes under state law.
Limits and Unknowns
- The official text does not define exactly what counts as 'qualified contributions' beyond stating they must promote childcare.
- The credit is only available for taxable years beginning on or after January 1, 2027, and before January 1, 2032.