CA AB1861

Allows a tax credit against personal income tax and corporation tax for qualified taxpayers who employ eligible individuals, for taxable years 2023-2027, with a maximum credit of $30,000 per taxpayer per year.

Credit amounts are tiered based on hours worked: $2,500 (500-999 hours), $5,000 (1,000-1,499 hours), $7,500 (1,500-1,999 hours), and $10,000 (2,000+ hours).

Defines "eligible individual" as a person aged 16-26 who spent time in foster care at age 13 or older and whose eligibility is verified by a county child welfare agency or State Department of Social Services.

Requires eligible employers to pay at least 120 percent of minimum wage and request credit reservations from the Franchise Tax Board within 30 days of hiring or within one year and 30 days of prior reservation.

Caps total annual credits allocated to all taxpayers at $30 million plus any unallocated credits from prior years, with credits expiring December 1, 2028; imposes state-mandated duties on county child welfare agencies.