LOState Senator María Elena Durazo and State Assemblyman Richard Bloom (D-Santa have introduced a
package of legislation - Senate Bill 424 and Assembly Bill 675 - to create a California Homeless Hiring Tax
Credit they allege would simultaneously confront the homelessness crisis facing California, address the
rampant job losses stemming from the COVID-19 pandemic that have disproportionately harmed low-
income communities, and ease the significant financial strain that many small businesses are currently
experiencing.
Establishing a tax credit between $2,500 and $10,000 per qualified homeless individual hired would
create access to meaningful employment and pathways to careers for up to 3,000 individuals currently
experiencing homelessness in California. Under this proposal, a qualified employer could claim $30,000
in tax credits annually, thereby assisting both individuals experiencing homelessness in addition to
businesses that need additional support to cover bills and weather the economic impacts of the
pandemic.
"This bill would elevate small businesses that provide quality, high-road jobs as critical partners in our
response to homelessness in California,” said Senator Durazo. “And as we look toward an equitable
recovery from the COVID-19 pandemic, this legislation will connect people who are experiencing
homelessness to good jobs and living wages. This bill will reward the businesses that are willing to invest
in our brothers and sisters who are sleeping on the streets and looking for an opportunity to get their
lives back on track.”
“SB 424 and AB 675 are an important step towards addressing the crisis of our unhoused neighbors in a
way that brings our business community into the conversation,” according to Bloom. “Creating ways to
incentivize hiring of our unhoused neighbors will lead to employment and housing opportunities for our
homeless population, both of which are essential to ending the cycles of poverty. This tax credit can also
support our small businesses as they navigate beyond the pandemic.“
To qualify to receive the credit, an eligible employer would need to have 500 employees or less, pay
wages subject to withholding under the Unemployment Insurance code, pay family-supporting wages,
and be certified as a “high-road” employer by the Labor and Workforce Development Agency.
According to a study released by LAHSA in 2020, over 66,000 individuals were experiencing
homelessness on any given night in Los Angeles County. Additionally, the Los Angeles Economic
Development Corporation reports that LA County lost 437,000 jobs in 2020, will have 354,000 fewer
living wage jobs in 2021 compared to the pre-pandemic economy, and that 738,672 living wage jobs
need to be created for the entire LA County workforce to achieve a satisfactory standard of living.
Moreover, at least 25% of people experiencing homelessness have no prior employment experience; of
those who did have employment experience prior to COVID-19, two of the top four employment
industries were retail and food service – which have been heavily impacted by COVID-19. To support
small businesses and ensure an economic recovery that works for Californians most in need, it is
essential to prioritize our homeless neighbors who have experienced historical barriers to employment
and are facing an even bleaker job market today than they were a year ago.
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