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.
- Employer may receive between $2,500 to $10,000 credit per individual hired, based on the amount of hours worked
- Employer may hire up to 3 eligible individuals in a single tax year
- Employer must pay wages at 120% of local minimum wage
- Upon hire, employer has 30 days to apply through Franchise Tax Board (FTB) to reserve a tax credit through the reservation system
- The tax credit reservation system will require the following information:
- Name of employee
- Social Security Number
- Estimated hours planned to work during taxable year
- Start date of employment
- Upon request, FTB can require a certification from the employer verifying the employee was homeless at the time of hire or within 180 days prior to the date of hire
- This can be certified through a local continuum of care or community-based service provider and can either be provided to the potential employee or directly to the employer
- This certificate is valid for up to one year and then expires
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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.