CA AB194

Exempts diesel fuel from California sales and use tax from October 1, 2022 through September 30, 2023, excluding local taxes and certain state rates dedicated to local funding.

Requires the Controller to transfer estimated foregone sales tax revenues from the diesel exemption to the Public Transportation Account on a quarterly basis from April 1, 2023 through March 31, 2024.

Expands the homeless worker employment tax credit to include individuals who have recently received supportive services from homeless services providers and allows recertifications for eligible individuals.

Extends the California Competes Tax Credit allocation period through fiscal year 2027–28 at $180,000,000 annually and requires consideration of taxpayers' workforce treatment and job quality when allocating credits.

Allows one-time abatement of failure-to-file or failure-to-pay penalties for individual taxpayers who have never previously filed a California tax return or received penalty abatement, if all required returns are filed and taxes are paid or in a payment arrangement.