CA AB43

Establishes a state earned income tax credit (EITC) for taxable years 2016-2020, calculated as a percentage of the federal EITC amount, with percentages to be set by the Legislature in a budget bill.

Provides three credit tiers: families with at least one child under five years old receive one percentage, individuals without qualifying children receive another percentage, and other eligible individuals receive a third percentage.

Makes the credit refundable upon legislative appropriation, meaning taxpayers can receive refunds exceeding their tax liability, with refunds treated the same as federal EITC refunds for welfare eligibility purposes.

Refunds received under this credit are not counted as taxable income and do not affect eligibility for CalFresh, CalWORKs, or other welfare benefits under Division 9 of the Welfare and Institutions Code.

The section expires and is repealed on December 1, 2021.