Homeless Hiring Tax Credit Assembly Bill (AB) 150

Overview

California’s governor signed Assembly Bill (AB) 150 establishing the Homeless Hiring Tax Credit (HHTC). The credit is available for taxable years beginning January 1, 2022 through December 31, 2026. Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on the actual hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.

To be eligible, the employee must be certified by a certifying organization. Employers must make a tentative credit reservation with us to claim the credit. Employers will claim the credit when they file their tax return. A total of $30 million of credit is available annually.

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.

Hiring eligible employees

The California Workforce Association can assist you in hiring an eligible employee. Refer to this list of contacts by county for assistance.

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 Social security number
Business ID (California Corporation number, Federal Employer Identification Number, social security number, etc.) Date of hire
Address of business Date you completed EDD New Hire Reporting requirements
Business contact name and phone number Hours the employee is expected to work for the next 12 months
Paid preparer information
  • Preparer name
  • Preparer ID
Starting hourly wages
Information from the HHTC Certificate
  • Name and address of certifying organization
  • Eligible employee requirements
  • Date certificate was issued

After the above information is gathered, continue to the reservation page.

Start credit reservation

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 (CoC) 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 CoC 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.

Certifying organizations will:

  • Obtain the HHTC Certificate
  • Complete the certificate for each eligible employee, print, and sign
  • Provide the completed certificate (or scanned copy) to the:
    • Employer
    • Employee (to give to the employer)

Employee eligibility requirements

Eligible employees must meet the following requirements:

  • Be currently or recently homeless (within 180 days of hire) or be receiving services from a homeless services provider, and
  • Be certified by a certifying organization. The certificate expires 1 year after issuance.

Contact

For questions regarding the HHTC, you may contact us at:

Email
FTBHHTC@ftb.ca.gov