CA AB2393

Excludes CalWORKs education incentive awards ($500 for high school diploma/equivalent) and education stipends ($1,000 for enrollment in career technical or higher education programs) from gross income for personal income tax purposes for taxable years 2023-2028.

Treats education awards and stipends the same as federal earned income refunds for determining eligibility for state benefits under the Welfare and Institutions Code and exempts them from income/resource calculations for other state and local programs for 12 months from receipt, subject to federal law compliance.

Prohibits the Franchise Tax Board from withholding or levying education awards and stipends for tax liabilities, and prohibits the State Controller from offsetting delinquent accounts against these payments, until January 1, 2028.

Authorizes the Department of Social Services to establish a mechanism to issue awards and stipends as tax refund payments without modifying county processes, with exemption from garnishment orders to the extent consistent with federal law.

Requires the Department of Social Services to submit annual reports to the Legislature detailing the number of recipients issued education awards or stipends, contingent upon legislative appropriation.