CA AB1261

Establishes the California Preschool Investment Fund to accept monetary contributions for preschool education, operating as a pilot program in 5 selected counties until January 1, 2020.

Allows individual and corporate taxpayers to claim a tax credit equal to 40% of contributions made to the fund for taxable years 2015-2018, with an aggregate annual cap of $250 million across both personal income and corporation taxes.

Requires the State Department of Education to select 5 participating counties by September 1, 2015, prioritizing counties with high child care assistance waitlists, ability to increase preschool slots, and prior receipt of federal Race to the Top funds.

Directs fund revenues first to the General Fund (to offset certified tax credits), then to administrative costs for the Franchise Tax Board and Department of Education, with remaining appropriated funds supporting state preschool programs in the 5 participating counties.

Requires participating counties to submit annual reports assessing program performance, and mandates that any remaining fund balance after January 1, 2020, transfer to other state funds providing preschool access for low-income children.