Culver City Observer -

Gov. Newsom Signs Historic Homeless Hiring Tax Credit

 

Governor Gavin Newsom

Governor Newsom has signed AB 150 – a budget trailer bill – which includes the groundbreaking California Homeless Hiring Tax Credit.

State officials said the tax credit "simultaneously confronts the homelessness crisis facing California while also addressing the job losses stemming from the COVID-19 pandemic that have disproportionately harmed low-income communities."

Under this plan, a qualified employer can claim up to $30,000 in tax credits annually, assisting both individuals experiencing homelessness and businesses that need additional support to recover from the economic impacts of the pandemic, said state officials.

"Establishing a tax credit between $2,500 and $10,000 per qualified homeless individual hired will create access to meaningful employment and pathways to careers for as many as 3,000 individuals," the governor said in a statement.

To qualify to receive the credit, an eligible employer will need to pay wages subject to withholding under the Unemployment Insurance code, pay family-supporting wages, and be certified as a "high-road" employer by the Labor and Workforce Development Agency, said state officials.

Originally introduced by Senator María Elena Durazo (D-Los Angeles) and Assemblymember Richard Bloom (D-Santa Monica) through a package of legislation, the concept became a budget priority in both the State Senate and Assembly. The joint budget proposal was sent to Governor Newsom earlier this month.

 

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