CA AB1929

Establishes a California Earned Income Tax Credit (CalEITC) allowing credits against personal income tax based on federal Section 32 of the Internal Revenue Code, with credit percentages ranging from 7.65% for individuals with no qualifying children to 40% for those with two or more qualifying children.

Sets specific earned income amounts and phaseout amounts by number of qualifying children ($3,290 for no children, $4,940 for one child, $6,935 for two or more children), with annual recomputation adjustments beginning January 1, 2016.

Requires the Franchise Tax Board to annually report to specified legislative committees on CalEITC claims, including the number of returns claiming the credit, average credit amounts, distribution by dependents and income ranges, and estimates of families lifted out of deep poverty.

Adds new reporting requirements for the number of returns that are reduced in part before refund issuance and the number denied in full before refund issuance.

Provides that excess credits exceeding tax liability shall be refunded to taxpayers and treated the same as federal earned income refunds for purposes of determining eligibility for welfare benefits.