AB 158 Summary

• Establishes a workers' tax credit for taxable years beginning January 1, 2024, allowing qualified union members a credit equal to the greater of: (1) union dues paid multiplied by a workers' tax credit adjustment factor, or (2) dues paid up to $100 (adjusted annually), with intent to limit annual revenue loss to $400,000,000.

• Refunds excess credit amounts to taxpayers from the Tax Relief and Refund Account upon legislative appropriation; credit is in lieu of any other deduction for the same dues amounts.

• Clarifies that Paycheck Protection Program loan forgiveness under the PPP Extension Act of 2021 is excluded from gross income for taxable years beginning January 1, 2019 (retroactive application for personal and corporation income tax purposes).

• Restructures data-sharing between the Franchise Tax Board and state social services/health care departments to expand eligible tax credits covered (federal and state antipoverty tax credits), requires annual reporting on outreach effectiveness, and appropriates $20,000 to the Franchise Tax Board for administration.

• Transfers authority for making one-time "Better for Families Tax Refund" payments from the State Controller to the Franchise Tax Board.