Senator for the 22nd District - Ed Hernandez

04/22/2021 | Press release | Distributed by Public on 04/23/2021 17:04

CA Senate Governance and Finance Committee Passes Rubio Bill to Increase and Expand Eligibility for Tax Credit

SACRAMENTO, CA - Today, the California Senate Governance and Finance Committee passed a bill by Sen. Susan Rubio (D-Baldwin Park) that will provide critical economic relief by permanently increasing the California Earned Income Tax Credit (CalEITC) for workers who file with an Individual Taxpayer Identification Number (ITIN) and by expanding eligibility for the Young Child Tax Credit (YCTC).

Senate Bill 691 will permanently provide an additional $100 in tax credit for ITIN filers and expand eligibility for the YCTC from $1 to $0 earning, to include in-home caregivers without paid work.

'The CalEITC is one of the most effective tools for reducing poverty across the nation, and unfortunately, not everyone receives a meaningful tax credit,' Sen. Rubio said. 'Our low-wage earning workers have been more likely to lose their jobs this past year and need every possible resource available to help pay for food, rent, and other basic needs. Tax credit expansions, in particular, are critical to address the unmet needs of those who are excluded from federal aid and support, such as ITIN filers.'

'SB 691 is a call to provide more for those with children under 6 by removing unnecessary work requirements to make them eligible for the Young Child Tax Credit. This simple eligibility change would finally acknowledge that unpaid caregivers are essential members of families, communities and society as a whole,' said Sevly Snguon, Children's Defense Fund-CA, Economic & Health Justice Policy Associate.

'United Ways of California is thrilled to see SB 691 pass through the Senate Committee on Governance & Finance with bipartisan support.The CalEITC and Young Child Tax Credit are critical to lifting California families, especially those with young children, out of poverty, and provide much-needed assistance to working families and individuals who are struggling to afford basic necessities,' said Pete Manzo, President and CEO of the United Ways of California. 'SB 691 will continue California's quest to make the returns of hard work more for our most vulnerable communities. We extend our sincerest thanks to Senator Rubio for championing this issue as well as Senate Governance & Finance Chair, Mike McGuire for his leadership in making this a priority. We look forward to our continued work with the Legislature as we seek new pathways to provide more for our most vulnerable populations.'

According to the California Budget and Policy Center, more than half of low-income workers who benefit from the CalEITC are not eligible for the federal tax credit, and about half of those workers get less than $100. Many of the workers who would benefit from this are working COVID-19 essential jobs, and earn very little. SB 691 will provide much needed assistance to working families who are struggling to afford basic necessities. This bill will also prioritize the needs of the state's most vulnerable communities and ensures that there is an equitable distribution of financial resources.

SB 691 will next be heard in the Senate Appropriations Committee.