SACRAMENTO, CA – This week, Assemblymember Mark (D – Los Angeles) announced the introduction of AB 397, which will phase in expansions to the California Young Child Tax Credit (YCTC) and extend the California Child Tax Credit (CalCTC) to 500,000 families and over 1 million children.
"Too many Californians are struggling to make ends meet, and as someone who grew up in Section 8 housing, I have lived experience of what it is like growing up in poverty," said Assemblymember Mark González (D – Los Angeles). "I remember my mom working over 12 hours a day, and myself having to cash soda cans to help make ends meet. AB 397 will provide relief to communities facing the same hardships I experienced firsthand."
"I am proud to Joint-Author AB 397 with Assemblymember Mark González. Growing up with the impacts of financial instability led me to dedicate my career to alleviating poverty. As a mom of two young children, I know families must have their basic needs met and have economic opportunities to succeed," said Assemblywoman Celeste Rodriguez (D – San Fernando). "That's what AB 397 does, it will empower families to utilize money they've earned to support their households at a time when it is needed most."
"Californians are hurting and too many families are struggling to keep food on their tables or meet basic needs," said Assemblymember Sharp-Collins (D – San Diego). "Expanding eligibility for the very successful Young Child Tax Credit is just another way the Assembly is fighting to get resources to California families in need. There is no reason that families should lose critical relief just because their child turns 6 years old. Today, I stand with my colleague Assemblymember Gonzalez to provide a tangible solution to a real problem."
Once fully implemented, the California Child Tax Credit will provide up to $1,154 in tax benefits to families with a qualifying child whose income is under $31,950 per year. This credit helps lift communities out of poverty, offers relief from economic stresses, and provides a pathway to financial stability. Both the income threshold and CalCTC amount are adjusted annually to account for inflation.
Under the American Rescue Plan, the Federal government expanded the Federal Child Tax Credit to include all families with children between 0-18 years old. With the federal government failing to extend this successfully proven anti-poverty initiative, California needs to fill the void in the work to end child poverty.
"California's Young Child Tax Credit is an incredible tool to fight poverty, but the work of caregiving does not end when a child turns 6. Much like the struggle to afford housing, childcare, and other costs of living do not end when children turn 6," said Sam Wilkinson, Senior Policy Associate, GRACE - End Child Poverty CA. "We are proud to co-sponsor AB 397 by Assemblymember Mark González. AB 397 will address the current cliff families face by ensuring all CalEITC eligible filers qualify for the Young Child Tax Credit, making critical progress toward closing our racial wealth gap and supporting families."
"State investments like the Young Child Tax Credit hit the sweet spot — they are the most targeted and effective way to reduce poverty, helping families cover groceries, gas, and childcare, boosting local economies," said Danielle Bautista, Director of Public Policy, United Ways of California. "More than ever, this is the time for California to step up and ensure that children and families on the brink of poverty are prioritized. State tax credits like the Young Child Tax Credit — which families can claim regardless of immigration status — are one of the best tools we have to uplift struggling California communities, and United Ways of California is proud to co-sponsor AB 397 by Assemblymember Mark González."
"Too many families struggle to afford basic necessities which is why we are honored to support a Young Child Tax Credit that is for all eligible families. Direct cash assistance like the Young Child Tax Credit has proven to lift families out of poverty, strengthen local economies, and create brighter opportunities for our youngest children," said Amy Everitt, President of Golden State Opportunity. "We are proud to co-sponsor AB 397 by Assemblymember Mark Gonzalez which would build upon the success of the Young Child Tax Credit and expand it to include all CalEITC eligible families. This expansion means more families will get the support they need to build financial well-being and thrive."
Under current state law, only families with a child under 6 years old can qualify for the tax credit. Under AB 397, expansions over the next several years will phase in new definitions of a "qualifying child," allowing more families to receive this credit:
- 2025: Families with children younger than 10 years old will qualify
- 2026: families with children younger than 13 years old will qualify
- 2027: families with children younger than 16 years old will qualify
- 2028: families with children younger than 18 years old, or 19-23 if they are attending college will qualify
Assemblymember Mark González is the Assembly Majority Whip. He represents the 54th Assembly District composed of the cities of Los Angeles, Commerce, Montebello, and Vernon.
CONTACT: Jaspreet Johl; Jaspreet.Johl@asm.ca.gov; (916) 335-8871
