Bill > A3249

Introduced Session

This bill would increase the amount of the State child tax credit while also revising the credit's income and age eligibility criteria. Under current law, a resident taxpayer with New Jersey taxable income of $80,000 or less is allowed a credit against the State income tax for each child under age six. The amount of the credit starts at $1,000 and is incrementally reduced as income thresholds are exceeded. The credit is completely phased out once a taxpayer's income exceeds $80,000. Beginning in tax year 2023, the bill would increase the credit by $1,600 for taxpayers with children under age six and provide a credit between $1,200 and $2,000 to taxpayers with children ages six to 11. The bill would also raise the income limit at which the credit is completely phased out from $80,000 to $100,000 and make corresponding adjustments to the income thresholds in which reductions of the credit occur to reflect this increase. By enacting these changes to the State's child tax credit, a temporary increase in the federal child tax credit will be restored and made permanent at the State level for middle class taxpayers. As part of the federal "American Rescue Plan Act of 2021," Pub.L.117-2, the age limit for the child tax credit was raised from 16 to 17 and the amount of the credit was increased from $2,000 to $3,600 for taxpayers with children under age six. The credit was also increased from $2,000 to $3,000 for taxpayers with children ages six to 17. However, these changes only applied to tax year 2021, meaning that for tax year 2022, taxpayers experienced a reduction in the credit of between $1,000 and $1,600, depending on the age of their children, and one year less to claim the credit with the age of a qualifying child reduced from 17 to 16 years of age. For these reasons, it is critical for the State to step in and provide this much needed relief, particularly given the high levels of inflation.

Committee Categories

Aura Dunn (R)*, 

Introduced, Referred to Assembly Children, Families and Food Security Committee (on 01/09/2024)

Official Document