California’s Historic Tax Credit for Foster Youth: Assessing Progress in its Inaugural Year

In its first year of implementation, more than 4,700 youth received the California Foster Youth Tax Credit, collectively receiving nearly $5 million. 

This webinar marked the release of JBAY’s report summarizing the progress achieved in the first year of implementation of the new credit, which provided up to $1,083 to youth ages 18-26 who filed their 2022 state taxes, and were in foster care on or after their 13th birthday.

In the fall of 2021, JBAY proposed the creation of a new tax credit specifically for current and foster youth in California. With the support of State Controller Betty Yee, Governor Gavin Newsom, and the California State Legislature, this new tax credit was included in the FY 2022-23 state budget, funded at $21 million annually.