Assembly BillIntroducedRevenue and Taxation
AB 2673: Personal Income Tax Law: Corporation Tax Law: credit: childcare.
What AB 2673 does, verified April 29, 2026
The bill proposes a tax credit to promote childcare. It allows a credit against personal income tax and corporation tax for each taxable year from 2027 to 2032, up to $100,000. The credit is equal to 50% of qualified childcare contributions. The tax credit is designed to achieve specific goals, including promoting childcare, and requires the collection of performance data and reporting. The bill takes effect immediately as a tax levy.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: In committee: Set, second hearing. Held under submission. (2026-04-27)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions5 total · showing 5
| Apr. 27, 2026 | In committee: Set, second hearing. Held under submission. |
| Apr. 20, 2026 | In committee: Set, first hearing. Referred to REV. & TAX. suspense file. |
| Mar. 16, 2026 | Referred to Com. on REV. & TAX. |
| Feb. 21, 2026 | From printer. May be heard in committee March 23. |
| Feb. 20, 2026 | Read first time. To print. |
Latest bill textIntroduced version, February 20, 2026 · 1,230 words
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2673
| Introduced by Assembly Member Celeste Rodriguez |
February 20, 2026 |
An act to add and repeal Sections 17052.7 and 23627 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2673, as introduced, Celeste Rodriguez. Personal Income Tax Law: Corporation Tax Law: credit: childcare.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2027, and before January 1, 2032, in an amount equal to 50% of qualified contributions to promote childcare, up to $100,000, as specified.
Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would include findings and reporting requirements in compliance with this requirement.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 17052.7 is added to the Revenue and Taxation Code, to read:17052.7.
(a) For each taxable year beginning on or after January 1, 2027, and before January 1, 2032, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of qualified contributions to promote childcare during the taxable year, not exceed one hundred thousand dollars ($100,000) per taxpayer per taxable year.(b) For purposes of this section, the following shall apply:
(1) “Childcare” means care provided to a child 12 years of age or younger.
(2) “Qualified childcare facility” means a child day care facility as defined in Section 1596.750 of the Health and Safety Code.
(3) (A) “Qualified contributions to promote childcare” means any monetary contribution to promote childcare, including any of the following activities, and for which the taxpayer receives documentation from the recipient facility or program of the amount and purpose for the contribution:
(i) Donating money for the establishment or operation of a qualified childcare facility that uses the donation to provide childcare.
(ii) Donating money to establish a grant or loan program for a parent or parents in this state requiring financial assistance for childcare.
(iii) Pooling money of several businesses and donating the money for the establishment of a qualified childcare facility in this state.
(iv) Donating money for the establishment of an information dissemination program in the state to provide information and referral services to assist a parent or parents in obtaining childcare.
(B) “Qualified contributions to promote childcare” does not include any contribution that is not directly related to promoting childcare in the state or that a taxpayer makes to a childcare facility or program in which the taxpayer or a person related to the taxpayer has a financial interest.
(c) (1) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and the succeeding four years, if necessary, until the credit is exhausted.
(2) A taxpayer claiming the credit allowed by this section shall submit the documentation described in subdivision (A) of paragraph (3) of subdivision (b) as prescribed by the Franchise Tax Board.
(d) The board may adopt rules and regulations as necessary to administer this section.
(e) (1) For purposes of complying with Section 41, with respect to the credit allowed by this section and Section 23627, the Legislature finds and declares the specific goal, purpose, and objective of the credit is to generate funding for the purpose of early childcare programs and to assist those most in need of childcare.
(2) To measure whether the credit achieves the purpose described in paragraph (1), on or before July 1, 2029, and annually thereafter, the Franchise Tax Board shall prepare and submit a report to the Legislature, in compliance with Section 9795 of the Government Code, containing all of the following:
(A) The number of taxpayers that have claimed the credit.
(B) The amount of each credit claimed and the total amount that was claimed per fiscal year.
(C) The top 10 qualified childcare facilities or programs that received contributions for which a credit was claimed.
(D) A list of the types of facilities or programs that received contributions for which a credit was claimed.
(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.
(f) This section shall remain in effect only until December 1, 2033, and as of that date is repealed.
SEC. 2.
Section 23627 is added to the Revenue and Taxation Code, to read:23627.
(a) For each taxable year beginning on or after January 1, 2027, and before January 1, 2032, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of qualified contributions to promote childcare during the taxable year, not exceed one hundred thousand dollars ($100,000) per taxpayer per taxable year.(b) For purposes of this section, the following shall apply:
(1) “Childcare” means care provided to a child 12 years of age or younger.
(2) “Qualified childcare facility” means a child day care facility as defined in Section 1596.750 of the Health and Safety Code.
(3) (A) “Qualified contributions to promote childcare” means any monetary contribution to promote childcare, including any of the following activities, and for which the taxpayer receives documentation from the recipient facility or program of the amount and purpose for the contribution:
(i) Donating money for the establishment or operation of a qualified childcare facility that uses the donation to provide childcare.
(ii) Donating money to establish a grant or loan program for a parent or parents in this state requiring financial assistance for childcare.
(iii) Pooling money of several businesses and donating the money for the establishment of a qualified childcare facility in this state.
(iv) Donating money for the establishment of an information dissemination program in the state to provide information and referral services to assist a parent or parents in obtaining childcare.
(B) “Qualified contributions to promote childcare” does not include any contribution that is not directly related to promoting childcare in the state or that a taxpayer makes to a childcare facility or program in which the taxpayer or a person related to the taxpayer has a financial interest.
(c) (1) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and the succeeding four years, if necessary, until the credit is exhausted.
(2) A taxpayer claiming the credit allowed by this section shall submit the documentation described in subdivision (A) of paragraph (3) of subdivision (b) as prescribed by the Franchise Tax Board.
(d) The board may adopt rules and regulations as necessary to administer this section.
(e) This section shall remain in effect only until December 1, 2033, and as of that date is repealed.
SEC. 3.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.Text of AB 2673 as introduced, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions