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Committee places AB 397 on suspense file; bill would gradually expand California child tax credit to older children
Summary
AB 397 would expand the Young Child Tax Credit incrementally to cover children up to age 18 (and some college-aged children) over four years; proponents said the change would lift additional low-income families out of poverty. The committee referred the bill to the suspense file.
Assembly Bill 397, presented by Assemblymember Gonzalez, would expand the state's Young Child Tax Credit over a four-year schedule and rename it the California Child Tax Credit. The expansion phases eligibility upward: in 2025 for children under 10; 2026 for under 13; 2027 for under 16; and by 2028 up to age 18 (and ages 19–23 while attending college), supporters said.
Supporters, including the California Budget and Policy Center and advocates for child-poverty reduction, argued the credit has proved effective at reducing deep poverty and that expanding eligibility would extend those benefits to roughly 500,000 additional families, according to witness estimates. Testimony cited studies that link refundable child tax credits to improved child health and educational outcomes.
Several committee members praised the bill's anti-poverty goals and asked about federal interactions and fiscal ramifications. The author and witnesses said the state-level change would help families who are excluded or inadequately served by federal credits and would provide consistent support as children age. The committee designated AB 397 a suspense-file candidate for fiscal review.
