CA AB2589

Revises California's Earned Income Tax Credit (EITC) for taxable years beginning January 1, 2022 and later by modifying credit percentages, phaseout percentages, and earned income thresholds to expand eligibility and increase credit amounts upon legislative appropriation.

Establishes a minimum EITC of $299 (adjusted annually for inflation) for individuals with no qualifying children earning up to $28,000, with phaseout reducing the credit by $12.70 per $100 over the threshold amount.

Expands the Young Child Tax Credit upon appropriation, increasing the credit to $2,353 per qualifying child (adjusted annually) and expanding the definition of "qualified taxpayer" to include individuals with zero or negative earned income who meet wage requirements.

Changes the definition of "qualifying child" for the Young Child Tax Credit to include children under age 18 (instead of only children under age 6) when an appropriation is made.

Modifies Section 17052.1 to allow the expanded Young Child Tax Credit in taxable years when the Legislature appropriates funds, with credits subject to phaseout based on earned income exceeding the applicable threshold amount.