AB 194 Provides a Tax Credit for Employing an Individual who is or Recently was Homeless

AB 194, which was recently approved by the Governor, states

The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws, including a credit against the personal income and corporate income taxes for each taxable year beginning on or after January 1, 2022, and before January 1, 2027, in an amount between $2,500 and $10,000, to a qualified taxpayer that employs an individual who is or recently was homeless, and who meets other specified requirements, as certified by a continuum of care or a community-based service provider, as provided. That credit also applies where the employee is receiving supportive services from a homeless services provider.

This bill would expand the credit to include qualified taxpayers that employ a person who has recently received services from a homeless services provider. The bill would also allow a continuum of care or a community-based service provider to issue recertifications, as described. The person is homeless or has received supportive services from a homeless services provider, as designated by a local continuum of care or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, on the date of the hire or anytime during the 180-day period immediately before the hire.

A credit shall not be allowed under this section unless the eligible employer submits to the Franchise Tax Board, upon request, a certification issued by a continuum of care, or a community-based service provider that is connected to the local coordinated entry system or to a local Homeless Management Information System, or other program as specified by the Franchise Tax Board.

Click here to read the bill.