AB397 proposes a young child tax credit to reduce poverty among California's poorest working families and young children.

AB397 amends the Revenue and Taxation Code to establish a young child tax credit for qualified taxpayers. The credit aims to reduce poverty among California's poorest working families and young children. The Franchise Tax Board is authorized to prescribe regulations to implement the credit, which may be adopted as emergency regulations. The credit amount is determined based on the earned income tax credit adjustment factor and is subject to annual recomputation. The credit is limited to qualifying children under specific age thresholds, which vary by taxable year.

AB397 proposes a young child tax credit to reduce poverty among California's poorest working families and young children.

AB397 amends the Revenue and Taxation Code to establish a young child tax credit for qualified taxpayers. The credit aims to reduce poverty among California's poorest working families and young children. The Franchise Tax Board is authorized to prescribe regulations to implement the credit, which may be adopted as emergency regulations. The credit amount is determined based on the earned income tax credit adjustment factor and is subject to annual recomputation. The credit is limited to qualifying children under specific age thresholds, which vary by taxable year.