Quick Information
Resource
Homeless Hiring Tax Credit
- Established a tax credit for employers to hire eligible homeless individuals
- The tax credit can max out at $30,000 for an eligible employer in a taxable year
- The tax credit will have a cap of $30 Million per year. Any unused funds will be carried over into the following year
- The tax credit will run from January 1, 2022 through December 1, 2027
- To be eligible the employee must meet a minimum amount of hours worked requirement for the credit.
- The breakdown for hours is below:
- 500-999 hours worked = $2,500
- 1000-1499 hours worked = $5,000
- 1500-1999 hours worked = $7,500
- 2000+ hours worked = $10,000
- The language for the Homeless Hiring Tax Credit (HHTC) can be found in Assembly Bill 150 that was signed by the Governor on July 16, 2021
- The link to the specific bill language is here.
Eligible Employer Information
To claim the HHTC, employers will need to:
- Obtain an HHTC certificate for each eligible employee from a certifying organization.
- Pay wages equal to or greater than 120% of their California minimum wage.
- Make a tentative credit reservation within 30 days of completing the New Hire reporting requirement with the
- Employment Development Department.
- Employers must keep the certificate and provide a copy to the Franchise Tax Board (FTB) upon request.
Obtaining certification for an eligible employee
Employers can get certification for eligible employees through a certifying organization.
Homeless Hiring Tax Credit Tentative Credit Reservation
You will need an HHTC Tentative Credit Reservation (TCR) from us to claim the credit. This will require a reservation for each eligible employee. You must submit your information online. You will receive an immediate confirmation. You must request a TCR within 30 days of completing your Employment Development Department (EDD) New Hire Reporting Requirements.
Gather the following information to complete the reservation.
| Employer Information | Employee Information |
| Type of entity (corporation, partnership, individual, etc.) | Employee’s name |
| Name of business | Date of hire |
| Business ID (California Corporation number, Federal Employer Identification Number, social security number, etc.) | Date you completed EDD New Hire Reporting requirements |
| Address of business | Starting hourly wages |
| Business contact name and phone number | Information from the HHTC Certificate > Name and address of certifying organization > Eligible employee requirements > Date certificate was issued |
| Paid preparer information > Preparer name > Preparer ID |
After the above information is gathered, continue to the reservation page.
Credit amounts
The credit amount is based on the number of hours worked by the eligible employee in the taxable year.
| Actual hours worked (in the taxable year) | Credit amount |
| 0 – 499 | $0 |
| 500 – 999 | $2,500 |
| 1000 – 1499 | $5,000 |
| 1500 – 1999 | $7,500 |
| 2000 or more | $10,000 |
Claiming the credit
You can claim the nonrefundable credit for taxable years beginning on or after January 1, 2022, and before January 1, 2027.
Any unused credit may be carried over for 3 taxable years after the year the credit was generated.
You can only claim the credit on a timely filed (including extensions) original tax return. It cannot be claimed on an amended return.
Certifying organizations
Certifying organizations include continuum of care programs and community-based service providers. A certifying organization will confirm employer and employee eligibility and provide the certification for the employer.
The HHTC Certificate is to be completed by a continuum of care or a community-based service provider to certify that the eligible individual is experiencing homelessness as defined under California Revenue and Taxation Code Sections 17053.80 and 23629. Only organizations that are connected to the local coordinated entry systems or to a local homeless management information system may certify an eligible individual.
If you need assistance finding an eligible employee, please reach out to a business services representative at your local workforce development board. Please refer to this list of contacts based on your geography to get in touch with one.
Where can I find more information?
You can contact the Franchise Tax Board at ftb.ca.gov or 1 (800) 852-5711.
More detailed information will be updated in the near future.
