For tax years beginning on or after January 1, 2023, California excludes from gross income for personal income tax purposes the following amounts associated with Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Accounts:

funds deposited in an account;

investment returns accrued;

interest accrued; and

funds withdrawn or transferred from an account by an eligible youth.

Also, the above amounts will not constitute earned income for purposes of eligibility for:

the California earned income tax credit; and

the young child tax credit.

The HOPE for Children Trust Account program provides assistance to California children who are:

from lower-income households and had a primary caregiver die due to COVID-19; or

dependents or wards under the jurisdiction of a juvenile or tribal court in foster care with reunification services terminated by court order.

A.B. 156, Laws 2022, applicable as noted