AB 397: Personal Income Tax Law: young child tax credit.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a young child tax credit to a qualified taxpayer in a specified amount multiplied by the earned income tax credit adjustment factor, as provided. That law also allows a payment from the continuously appropriated Tax Relief and Refund Account for an amount in excess of tax liability. Existing law defines “qualified taxpayer” for this purpose to include an eligible individual, as defined, who has a qualifying child, defined to be a child younger than 6 years of age as of the last day of the taxable year, and who meets other specified criteria.

This bill, for taxable years beginning on or after January 1, 2025, would instead define a “qualifying child” to mean a child younger than a specified age as of the last day of the taxable year, as described. By increasing the payments from the Tax Relief and Refund Account, a continuously appropriated fund, the bill would make an appropriation.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

Sponsors

Sponsors by party (alphabetical): Democratic 28

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 23, 2025In committee: Held under submission.
4. May 21, 2025Joint Rule 62(a), file notice suspended. (Page 1627.)
5. May 21, 2025In committee: Set, first hearing. Referred to APPR. suspense file.
6. May 14, 2025In committee: Hearing postponed by committee.
7. April 29, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 28). Re-referred to Com. on APPR.
8. April 29, 2025Coauthors revised.
9. March 10, 2025In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
10. February 18, 2025Referred to Com. on REV. & TAX.
11. February 4, 2025From printer. May be heard in committee March 6.
12. February 3, 2025Read first time. To print.