Governor Newsom signed SB 1409 (Caballero), which requires the Franchise Tax Board to issue a plan to increase the claims of the California and federal Earned Income Tax Credit (EITC), including alternative filing systems to help low-income families that currently miss out on the credit.

The CalEITC is a refundable tax credit that provides money back to working low-income families at tax time. Unfortunately, eligible families failed to claim millions of dollars because they are unaware the credit exists or because they do not file a tax return. For the 2019 tax year, the Franchise Tax Board estimated 1.25 million eligible taxpayers would not claim the money they are entitled to receive.

Senator Caballero states, “The CalEITC is one of the most effective tools to combat poverty in the state. Due to the COVID-19 pandemic, our most vulnerable families are in desperate need of financial assistance and will likely continue to be for some time. SB 1409 will help inform California’s path forward to make sure the EITC reaches more eligible families in the years to come.”

SB 1409 was co-sponsored by End Child Poverty CA/The GRACE Institute, Economic Security Project Action, and Tipping Point Community, organizations that fight to combat poverty in California.

“Now more than ever, we need to use every tool we have to support Californians who are struggling. SB 1409 paves the way toward putting millions more dollars into the hands of those who need it most, spurring local economic activity, and making California’s economy more just. Thank you to Senator Caballero for her leadership and persistence in taking on this critical common sense measure to make our government work better for everyone,” said Teri Olle, California Campaign Director, Economic Security Project Action.

"We commend the Governor and the Legislature on their support for SB1409, which uses existing resources to get more cash to low-income working Californians. In particular, we thank Sen. Caballero for her leadership in fighting poverty by helping more people obtain the state tax

credits they have earned,” added Sam Cobbs, Chief Executive Officer, Tipping Point Community

Caballero continued, “SB 1409 is a good government bill that will eligible families receive this important credit. Now more than ever, families that are struggling financially and need government to work for them. SB 1409 will help us accomplish that.”

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Senator Anna M. Caballero represents the 12^th Senate District, composed of Merced, Madera, and San Benito Counties, and portions of Fresno, Monterey, and Stanislaus Counties.