New California law expands tax credit for immigrants

Posted at 3:53 PM, Sep 18, 2020
and last updated 2020-09-18 19:10:53-04

SACRAMENTO, Calif.  — California Gov. Gavin Newsom has signed AB 1876, a law giving tax breaks to more immigrants.

In June, California expanded its earned income tax credit to apply to immigrants who have jobs and pay taxes but don't have a Social Security number. But the credit only applied to immigrants who had a child under 6. It is referred to as the CalEITC and the Young Child Tax Credit (YCTC).

The law Newsom signed Friday eliminates that requirement, making the tax credit available to more people.

According to a statement from the governor's office, "an estimated two in three of eligible workers under this new expansion are essential workers – including workers in restaurants, grocery stores and the farm industry."

“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 Governor Newsom.

“The CalEITC is a powerful tool to help uplift hardworking families across this state,” added First Partner Jennifer Siebel Newsom. “I am proud the Governor is signing this critical piece of legislation to ensure this transformative benefit reaches even more families.”

It's one of several laws California has enacted in recent years to offer more government services to people living in the country illegally. Newsom said the law will help stimulate the economy.

“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,” said Newsom.