Bill > A5738

Introduced Session

This bill would revise various aspects of the State child tax credit. Under current law, taxpayers with incomes of $80,000 or less and children under the age of six are eligible for an income tax credit of between $200 and $1,000 per child. The amount of the credit a taxpayer receives each year is based on the extent to which the taxpayer exceeds certain income thresholds. The credit amount gradually decreases as a taxpayer's income increases before being completely phased out once the taxpayer's income exceeds $80,000. The bill would raise the age limit of an eligible child from under age six to under age 18, raise the income limit needed to qualify for the credit from $80,000 to $150,000, and increase the amount of the credit. The bill would also make changes to the income thresholds at which a reduction in the credit occurs and change the income intervals at which those reductions would occur. Currently, a reduction in the credit occurs for every $10,000 increase in income, with the exception of those taxpayers with incomes between $60,000 and $80,000. The bill would instead have reductions in the credit occur for every $20,000 of additional income earned in excess of $30,000 to allow taxpayers to continue claiming a higher credit. Taxpayers with incomes of less than $30,000 would have their credit amount doubled from $1,000 to $2,000 with corresponding credit reductions of $200 as a taxpayer's income approaches $150,000. Under the bill, the credit is completely phased out once a taxpayer's income exceeds $150,000. A summary of the bill's proposed income and credit amounts are as follows: Proposed New Jersey Taxable Income AmountProposed Credit Amount$30,000 or under$2,000over $30,000 but not over $50,000$1,800over $50,000 but not over $70,000$1,600over $70,000 but not over $90,000$1,400over $90,000 but not over $110,000$1,200Over $110,000 but not over $130,000$1,000Over $130,000 but not over $150,000$800

AI Summary

Committee Categories

Carol Murphy (D)*, 

Introduced, Referred to Assembly Women and Children Committee (on 11/30/2023)

Official Document