Bill > A3858

Introduced Session

This bill makes changes to the credit against the New Jersey gross income tax for employment-related expenses incurred while caring for a child or dependent. Currently, the credit is refundable and available to resident taxpayers who are allowed the federal child and dependent care credit and have New Jersey taxable income of $150,000 or less for the taxable year. The bill: (1) makes the credit nonrefundable; (2) sets a limit on the maximum credit allowed for a taxable year to $1,000 for employment-related expenses paid by the taxpayer for one qualifying individual and $2,000 for employment-related expenses paid by the taxpayer for two or more qualifying individuals; and (3) increases the amount of the State credit available to taxpayers by expanding qualifying income brackets. For example, under current law, an eligible taxpayer with income less than $30,000 is allowed a credit equal to 50 percent of the taxpayer's federal credit. The bill increases the $30,000 income limit to $50,000, and all other brackets have also been expanded to allow more taxpayers to qualify for enhanced benefits.

AI Summary

Committee Categories

Verlina Reynolds-Jackson (D)*,  Anthony Verrelli (D)*,  Benjie Wimberly (D)*,  Angela Mcknight (D), 

Introduced, Referred to Assembly Women and Children Committee (on 05/09/2022)

Official Document