CA AB131

Extends protection from tax refund offset for individuals receiving foster youth tax credit (in addition to existing earned income and young child tax credits) for taxable years beginning January 1, 2024 or later.

Changes Department of Finance tax expenditure reporting deadline from September 15 to November 1 annually, and requires reports to include personal income tax expenditure costs and taxpayer counts categorized by income level (effective August 1, 2023).

Expands hiring tax credit for semiconductor, lithium production, lithium battery manufacturing, and electric airplane manufacturers by eliminating designated census tract location requirements and allowing extended timelines for credit applications (taxable years 2023-2025).

Excludes settlement payments from PG&E for 2019 Kincade Fire (Sonoma County) and 2020 Zogg Fire (Tehama and Shasta Counties) from gross income for taxable years 2020-2027.

Requires Better for Families Tax Refund payments to be issued by September 30, 2023, and updates EITC notification requirements for employers and state agencies to include free tax preparation services and other antipoverty tax credits.