AB 1593 Summary

• Allows individuals with a federal Individual Taxpayer Identification Number (ITIN) to claim California's Earned Income Tax Credit (CalEITC) beginning January 1, 2019, if they have a qualifying child under age 6, subject to legislative appropriation authorization.

• Requires ITIN users to provide identifying documents acceptable under Vehicle Code Section 12801.9 and documents showing earned income; must notify the Franchise Tax Board upon obtaining a Social Security Number.

• Prohibits collected documents from being used as evidence of citizenship or immigration status and protects such information as confidential under state tax privacy laws.

• Establishes increased credit percentages and phaseout amounts for eligible individuals beginning January 1, 2019, with automatic annual adjustments tied to inflation and a phaseout complete at $30,000 earned income until minimum wage reaches $15 per hour.

• Declares that retroactive application of the credit serves a public purpose and does not constitute a prohibited gift of public funds, and clarifies that no state reimbursement to local agencies is required.