Bill > S1482

Introduced Session

This bill (1) expands eligibility for the credit against the New Jersey gross income tax for employment-related expenses incurred while caring for a child or dependent, and (2) increases the amount of the credit. Under current law, the New Jersey credit is available to resident taxpayers who are allowed the federal credit and have New Jersey taxable income of $150,000 or less for the taxable year, regardless of the taxpayer's filing status. The amount of the New Jersey credit allowed to a taxpayer is equal to a percentage of the federal credit allowed to the taxpayer for the taxable year. The bill expands qualifying income brackets for taxpayers who are married filing jointly or filing as a head of household or as a surviving spouse for federal income tax purposes, and raises the $150,000 income eligibility limit to $250,000 for these taxpayers. Under the bill, the income limit would remain at $150,000 for all other filing statuses. The bill also expands eligibility for the New Jersey credit to married individuals filing separately who (1) meet the income eligibility criteria for single filers under the bill and (2) would have been eligible for the federal credit except that those individuals did not meet the joint filing requirement. To be eligible for the New Jersey credit, the bill requires married individuals filing separately to meet all requirements, except for the joint filing requirement, of the federal credit. Finally, the bill increases the amount of the New Jersey credit available to taxpayers. For example, under current law, a taxpayer with income less than $30,000 is allowed a New Jersey credit equal to 50 percent of the federal credit. The bill increases the amount of the New Jersey credit for taxpayers in this bracket to 60 percent of the federal credit, and the amount of the credit that can be claimed by all other brackets has also been increased by 10 percentage points.

Committee Categories

Joe Lagana (D)*, 

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

Official Document