Homeless Hiring Tax Credit Assembly Bill (AB) 150
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 hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.
To be eligible, the employee must have a certificate issued by a certifying organization. Employers must make a tentative credit reservation with us to claim the credit. A total of $30 million of credit is available annually.
Eligible employee requirements
Eligible employees must meet the following requirements:
- Be currently/recently homeless (within 180 days of hire) or be receiving services from a homeless services provider, and
- Receive a certificate through a certifying organization. The certificate expires 1 year after issuance.
Eligible employer information
To claim the HHTC, employers will need to:
- Obtain a certificate for each eligible employee from a certifying organization.
- Pay wages equal to or greater than 120% of the state minimum wage.
- Make a tentative credit reservation within 30 days of completing the New Hire reporting requirement with the Employment Development Department.
A copy of the certificate must be provided to us upon request.
Make a reservation
You need an HHTC Tentative Credit Reservation from us to claim the credit. You will need a reservation for each eligible employee.
You will be able to make a reservation in January 2022. Check back for updates on how to make a reservation.
A certifying organization will confirm employee eligibility and provide the certification. Check back for updates on how to get certification for an eligible employee.
The credit amount is based on the number of hours worked by the eligible employee in the taxable year.
|Hours worked||Credit amount|
|0 – 499||$0|
|500 – 999||$2,500|
|1000 – 1499||$5,000|
|1500 – 1999||$7,500|
|2000 or more||$10,000|