Personal Income Tax Law: Young Child Tax Credit.

(1) The Personal Income Tax Law, for each taxable year beginning on or after January 1, 2019, allows a refundable young child tax credit against the taxes imposed under that law in a specified amount, not to exceed $1,000 per each qualified taxpayer per taxable year. Existing law defines "qualified taxpayer" for this purpose to include an eligible individual who has a qualified child, as defined, and is allowed an earned income tax credit, as specified. Existing law requires amounts of the credit in excess of the qualified taxpayer's tax liability to be credited against other amounts due, if any, and the balance, if any, to be paid to the qualified taxpayer from the Tax Relief and Refund Account, a continuously appropriated fund. This bill would expand the definition of "qualified taxpayer" to also include an eligible individual who has a qualified child and would have received an earned income tax credit but for the fact that the individual has no earned income, as defined, for the taxable year. The bill would require the amount of the young child tax credit to be recomputed annually in the same manner as the recomputation of income tax brackets, as specified. The bill would authorize amounts of the credit in excess of the qualified taxpayer's tax liability that are for these expanded qualified taxpayers or that are for specified additional amounts to be credited against other amounts due and paid to the qualified taxpayer only upon appropriation by the Legislature. (2) Existing law requires any bill authorizing a new tax expenditure, as defined to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. (3) This bill would take effect immediately as a tax levy.