CA AB201

Extends California Earned Income Tax Credit (EITC) phaseout percentages after minimum wage reaches $15 per hour, applying prior year percentages to subsequent taxable years beginning after that threshold is met.

Creates new Foster Youth Tax Credit of $1,176 (adjusted annually) for individuals ages 18-25 who received EITC, were in foster care at age 13 or older under Title IV-E agency placement, effective for taxable years beginning January 1, 2022.

Expands Young Child Tax Credit eligibility to include individuals with zero or negative earned income who would otherwise qualify for EITC, and requires annual recomputation of credit amounts.

Authorizes information sharing between State Department of Social Services and Franchise Tax Board to verify foster care status for tax credit administration purposes, subject to federal approval.

Makes appropriations from Tax Relief and Refund Account for excess credits beyond tax liability and requires annual Franchise Tax Board reporting on credit usage and effectiveness.