Hiring Homeless Tax Credits: Employer Eligibility Guidelines
Official Press Release Available HERE
Governor Newsom signed Assembly Bill 150, as part of the overall budget package, that included the language to set up a Homeless Hiring Tax Credit (HHTC) with the Franchise Tax Board (FTB). Here is what you need to know so that you can determine if the program is a fit for your business.
- An employer is eligible for the credit if they hire an individual who is homeless at the time of hire or experienced homelessness in the 180 days prior to their hire date, they pay that individual a wage that is 120% of the local minimum wage, and the individual works at least 500 hours for the employer during that taxable year.
- An employer can hire up to 3 homeless individuals, and the credit could reach $30,000 if all three of those individuals work a minimum of 2,000 hours during that taxable year
- The employer will file their tax return with the FTB per usual and claim the tax credit for the previous year
- Upon request by the FTB, an employer will need to provide a certificate of eligibility from a continuum of care or community-based service provider who has access to the local coordinated entry system, the local Homeless Management Information System (HMIS), or other program as specified by the FTB. These certificates will be coordinated through the FTB and shall expire one year after issuance
- Once an employer has hired an eligible homeless individual, they will need to request a credit reservation from the FTB within 30 days
- The credit reservation from the FTB will require the employer to provide the following:
- Social Security Number
- Hours expected to work over the next 12 months
- Start date of employment