California Earned Income Tax Credit Outreach, Education, and Free Tax Assistance Grant Program.

The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including the California Earned Income Tax Credit (CalEITC) , the Young Child Tax Credit (YCTC) , and the Foster Youth Tax Credit (FYTC) . Beginning on or after January 1, 2020, CalEITC is available to any eligible individuals using an individual taxpayer identification number (ITIN) . Existing federal income tax law authorizes a refundable earned income tax credit (federal EITC) for certain low-income individuals who have earned income and meet certain other requirements. This bill would enact the Free Tax Prep and Community Engagement Act, which would establish the California Earned Income Tax Credit (CalEITC) Outreach, Education, and Free Tax Assistance Grant Program. Upon appropriation by the Legislature, the bill would require the Franchise Tax Board to allocate grants to qualified nonprofit community-based organizations or local government agencies to increase the number of eligible households claiming the state and federal Earned Income Tax Credit, the federal Child Tax Credit, the Young Child Tax Credit, and the Foster Youth Tax Credit, and to increase awareness of ITIN tax status eligibility. The bill would authorize the Franchise Tax Board to administratively partner with the Department of Community Services and Development to administer the program. The bill would establish the California Earned Income Tax Credit (CalEITC) Outreach, Education, and Free Tax Assistance Grant Fund in the State Treasury for these purposes.