California Legislature Votes to More Than Double Tax Credit for Low-Wage Workers

$1 Billion Cal EITC Headed to Governor’s Desk

Sacramento, CA — Lawmakers approved a massive expansion of the California Earned Income Tax Credit (Cal EITC) Thursday that is expected to return $1 billion to California workers next year, more than doubling the current economic benefit of this proven anti-poverty program. This historic victory for workers will help 3 million California households, representing an estimated 7 million people—including millions of children—to better afford life’s basic needs.

“Today hardworking low-income Californians scored a massive win—and they earned it. The Legislature’s action to more than double the California Earned Income Tax Credit is historic. This now billion dollar program will help lift millions of families and children out of poverty and stimulate the economy in every corner of the state, especially in underserved areas that need it most,” said Golden State Opportunity / CalEITC4Me President Josh Fryday, “The Governor and Legislature stepped up big time to help create a California for all, and uplift hardworking people who struggle everyday.”

The expansion package increases the income threshold to qualify for the Cal EITC to workers making $15 an hour, the 2020 minimum wage, and will give many people a more meaningful credit, especially families with children under age 6, who will receive an additional $1,000. It also creates a sustainable funding source for the Cal EITC by closing tax loopholes for large corporations and wealthy investors.