Plain English Breakdown
The effective date is not explicitly listed in the metadata provided, though the text specifies application for taxable years beginning on or after January 1, 2025.
AB-398: Minimum Earned Income Tax Credit
This law sets a minimum credit of $355 for eligible taxpayers who qualify for the state earned income tax credit starting in taxable years beginning on or after January 1, 2025.
What This Bill Does
- Sets a floor so that if an eligible person's calculated credit is less than $355, they receive $355 instead.
- Applies to tax years starting on or after January 1, 2025.
- Authorizes additional payments from the Tax Relief and Refund Account to cover these credits.
Who It Names or Affects
- Eligible individuals who qualify for the state earned income tax credit but would otherwise receive less than $355.
Terms To Know
- Earned Income Tax Credit
- A payment or tax reduction given to eligible individuals based on federal rules adjusted by a state factor, calculated as a percentage of earned income and phased out above certain amounts.
- Taxable year
- The 12-month period used for calculating taxes; this law applies to years starting on or after January 1, 2025.
Limits and Unknowns
- The bill states 'except as otherwise specified,' meaning other rules in existing law may limit who gets the $355 minimum.
- The text does not specify the exact total dollar amount needed to fund these payments, only that it authorizes additional payments from a continuously appropriated account.