AB 1161 Summary

• Creates the California Preschool Investment Fund to accept voluntary monetary contributions for preschool funding through a five-county pilot program operating until January 1, 2021.

• Allows taxpayers a 40% tax credit on contributions to the fund under both personal income tax and corporation tax for taxable years 2016-2019, with an aggregate cap of $250,000,000 per calendar year.

• Requires the State Department of Education to select five counties (prioritizing those with long child care waitlists, ability to expand preschool slots, and prior Race to the Top funding) to participate and fund state preschool programs in those counties.

• Mandates the Franchise Tax Board notify the state monthly of allocated credits and requires participating counties to annually report on program performance to the Department of Education's Early Education & Support Division.

• Transfers remaining fund moneys after January 1, 2021 to other state funds providing preschool access for low-income children, and counts annual tax credits claimed as tax proceeds for purposes of calculating state support for school and community college districts.