Bill > AB838

This bill proposes to temporarily expand California's existing renter's credit program to provide more substantial financial relief to low and middle-income renters. Currently, renters can receive a modest tax credit of $120 for married joint filers and $60 for individuals, with income limits of $50,000 and $25,000 respectively. The bill would increase these credits to $2,000 for married joint filers and $1,000 for individuals, with new income limits of $150,000 and $75,000 respectively. These enhanced credits would be available for five consecutive tax years, but only when specifically authorized in a Budget Act-related bill. If not authorized, the original credit amounts would remain in effect. The Franchise Tax Board would be required to annually adjust these amounts for inflation. Importantly, for the years when the expanded credit is operative, any credit amount exceeding a taxpayer's tax liability would be refundable, meaning the excess would be paid directly to the qualified renter from the Tax Relief and Refund Account. The bill also requires the Franchise Tax Board to track and report on the credit's usage, with the goal of compensating renters for increasing rental costs in California. The legislation would take effect immediately as a tax levy.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB838