Bill
Bill > A3401
NJ A3401
NJ A3401Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill would provide a child tax credit for certain taxpayers with children ages six to 11 and increase the amount of the credit over a period of two years for taxpayers with children ages 11 and under. 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 is $500 per child if the taxpayer's income is $30,000 or less and is incrementally reduced with respect to levels of income in excess of $30,000. The credit is completely phased out once a taxpayer's income exceeds $80,000. In addition to those taxpayers with children under age six, the bill expands eligibility for the child tax credit to taxpayers with children ages six to 11. The bill also increases the amount of the credit over a period of two years. Taxpayers with an income under $30,000 and a child under age six would be eligible for a $750 credit for the 2023 and 2024 tax years with an incremental reduction of the credit for levels of income over $30,000 and a complete phase-out of the credit for incomes that exceed $80,000. For tax years beginning on or after January 1, 2025, the credit would increase to $1,000 for taxpayers with levels of income under $30,000 with an incremental reduction of the credit for levels of income over $30,000. The credit would continue to be completely phased out once a taxpayer exceeds $80,000 of income. Taxpayers with an income of $30,000 or less with a child ages six to 11 would be eligible for a $500 credit for the 2023 and 2024 tax years with an incremental reduction of the credit for incomes over $30,000 and a complete phase-out of the credit for incomes that exceed $80,000. For tax years beginning on or after January 1, 2025, the credit would increase to $600 for those taxpayers with levels of income under $30,000 with an incremental reduction of the credit for levels of income over $30,000. The credit would continue to be completely phased out once the taxpayer's income exceeds $80,000.
AI Summary
This bill expands the New Jersey Child Tax Credit to include children up to age 11 and increases the credit amount over a two-year period for taxpayers with children under 12, provided their New Jersey taxable income is $80,000 or less. For tax years 2023 and 2024, taxpayers with children under age six and an income of $30,000 or less will receive a $750 credit, with amounts decreasing for higher income brackets up to $80,000, while those with children ages six to 11 and an income of $30,000 or less will receive a $500 credit, also with decreasing amounts for higher incomes. Starting in tax year 2025, the credit for children under age six will increase to $1,000 for those earning $30,000 or less, and for children ages six to 11, it will increase to $600 for those earning $30,000 or less, with both categories continuing to phase out for incomes above $80,000. The bill also clarifies that the credit can be claimed using either a Social Security number or an Individual Taxpayer Identification Number, and any excess credit beyond the tax owed will be treated as a refundable overpayment, meaning taxpayers could receive it back as a refund.
Committee Categories
Education
Sponsors (4)
Last Action
Introduced, Referred to Assembly Children, Families and Food Security Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3401 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3401_I1.HTM |
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