Governor Gavin Newsom today signed a bill that further expands the California Earned Income Tax Credit. The legislation, AB 1876, is expected to make 600,000 more Californians eligible for the deduction, specifically undocumented filers who are otherwise eligible, according to the administration.
Newsom suggests greater access to the credit will bolster immigrant families facing COVID-19 induced recession and boost economic growth.
"The COVID-19 pandemic has hit California families hard – especially families of color who were already disproportionately impacted by the ongoing affordability crisis. Undocumented front line workers leave their families every day to keep our economy running, but many are still struggling to make ends meet," said the Governor. "Expanding the CalEITC will provide a critical boost to undocumented and mixed-status families across the state, stimulate the economy and make us all stronger in the face of economic uncertainty. These Californians are taxpayers and should be treated like taxpayers, eligible for the same credits, and pay the same tax rates."
State officials say AB 1876, which is a trailer bill that modifies the California budget, removes the requirement for any person who doesn't have a social security number but uses what is called a tax identification number when filing taxes to have at least one child under the age of six to qualify for the credit. That requirement will no longer apply in each taxable year starting with 2020.
"We know that immigrant workers have been disproportionately devastated by our current public health and economic crises. These tax-paying, essential workers continue to be shamefully and systematically left out of federal relief efforts," said Democratic Assemblymember Lorena Gonzalez of San Diego, Chair of the California Latino Legislative Caucus. "Today's signing of AB 1876 reflects our inclusive California values and provides tax equity to all our residents, including tax-filing undocumented workers.
The Governor claims that 97 percent of children who will benefit are children of color, and 90 percent are Latino.