CA AB91

Increases California Earned Income Tax Credit for taxable years beginning January 1, 2019 onward by raising credit percentages and phaseout amounts, with additional increases scheduled for 2020+ tied to minimum wage reaching $15/hour.

Creates new refundable Young Child Tax Credit of up to $1,000 per qualified taxpayer per year for children under age 6, beginning January 1, 2019, with credits exceeding tax liability paid from Tax Relief and Refund Account.

Conforms California tax law to federal Tax Cuts and Jobs Act changes regarding ABLE accounts, 529 college savings plans, student loan discharge exclusions, business accounting methods, long-term contracts, and like-kind exchanges (limiting to real property only).

Disallows net operating loss carrybacks for individual and corporate taxpayers for losses beginning January 1, 2019 onward; modifies excess business loss limitations for noncorporate taxpayers with sunset removed.

Increases small business accounting thresholds from $5-10 million to $25 million gross receipts for cash method, inventory, long-term contract percentage completion, and property capitalization rules, effective January 1, 2019.