Homeless Hiring Tax Credit Assembly Bill (AB) 150

Overview

The Homeless Hiring Tax Credit (HHTC) 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 hiring a new employee, or within 60 days of receiving a new certification for a previously certified employee.

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.

Newly Hired Employees

You must get a TCR for newly hired employees within 30 days of their date of hire (the date they begin work for the employer for wages).

Previously Hired and Certified Employees

Employees who you previously obtained a certification and TCR for may get a new TCR if you receive a new certification for the employee. You must get a  new TCR within 60 days of the new certification for this employee.

Gather the following 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	Hours the employee is expected to work for the next 12 months
Business contact name and phone number	Starting hourly wages
Paid preparer information Preparer name Preparer ID	The HHTC Certificate

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

• File your income tax return
• Attach Homeless Hiring Tax Credit (FTB 3831)
• Visit Instructions for form FTB 3831 for more information
• Any unused credit may be carried over for 3 taxable years after the year the credit was generated.

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.

The certificate expires one year after issuance.

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 individual employees must meet the following requirements:

• In the previous 180 days, be homeless or be receiving services from a homeless services provider, and
• Be certified by a certifying organization. The certificate expires 1 year after issuance.

An eligible individual may receive a new HHTC certificate if, they are homeless or have received supportive services from a homeless services provider, on the date the eligible individual receives a new HHTC certificate or anytime during the 180-day period immediately before that date.

Contact

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

Email

FTBHHTC@ftb.ca.gov