CA AB2558

Establishes a new refundable child poverty tax credit for taxable years beginning on or after January 1, 2020, available to qualified taxpayers with at least one qualifying child.

Credits vary by region: $2,500 maximum per year for "Region 1" counties and $2,000 maximum per year for "Region 2" counties, based on the earned income tax credit adjustment factor.

Phases out by reducing the credit $20 for each $100 (or fraction thereof) of earned income exceeding the "deep poverty threshold amount" as defined in Section 17052.

Allows qualifying children who are noncitizens and modifies federal EITC rules to accept federal individual taxpayer identification numbers in addition to social security numbers.

Credit is refundable through the Tax Relief and Refund Account and only operative when the annual Budget Act authorizes resources for the Franchise Tax Board to oversee and audit the credit, and requires annual reporting on credit utilization and impact.