Bill > S1544

Introduced Session

This bill expands eligibility for 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 available to resident taxpayers who are allowed the federal child and dependent care credit and have New Jersey taxable income of $60,000 or less for the taxable year. The bill raises the $60,000 income limit to $150,000. The bill also increases the amount of the State credit available to taxpayers by expanding qualifying income brackets. For example, under current law, the State credit a taxpayer with income less than $20,000 receives is equal to 50 percent of their federal credit. The bill increases the $20,000 income limit to $50,000, and all other brackets have also been expanded to allow more taxpayers to qualify for enhanced benefits. In addition, the bill increases 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. Under current law, the maximum credit allowed is $500 for employment-related expenses paid by the taxpayer for one qualifying individual and $1,000 for employment-related expenses paid by the taxpayer for two or more qualifying individuals.

AI Summary

Committee Categories

Shirley Turner (D)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)

Official Document