CA SB860

Expands the Young Child Tax Credit to include individuals with no earned income who would otherwise qualify for the federal earned income tax credit, in addition to those currently eligible.

Requires the credit amount (initially $1,176) to be recomputed annually using the same method as income tax bracket adjustments.

Limits refunds for newly eligible taxpayers (those with zero earned income) and additional credit amounts to years when the Legislature appropriates funds, rather than automatic payments from the Tax Relief and Refund Account.

Requires the Franchise Tax Board to annually report on credit usage, including number of returns claiming it, qualifying children represented, and average credit amounts.

Applies to taxable years beginning on or after January 1, 2022, and takes effect immediately as a tax levy.