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Bill > A4890


NJ A4890

NJ A4890
Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.


summary

Introduced
05/07/2026
In Committee
05/07/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill increases the benefit amount under the New Jersey Earned Income Tax Credit (EITC) program to 60 percent of the federal benefit amount beginning in Tax Year 2022. The program, which piggy-backs on the federal EITC program, currently provides a refundable tax credit under the New Jersey gross income tax equal to 40 percent of the federal benefit amount. The federal and State EITC programs are meant to provide tax relief to low- to moderate-income workers and families. In most cases, taxpayers must first file for the federal EITC before they can claim the State EITC.

AI Summary

This bill increases the New Jersey Earned Income Tax Credit (EITC) program's benefit amount from 40% to 60% of the federal EITC amount for taxable years beginning on or after January 1, 2022. The EITC is a tax relief program for low- to moderate-income workers and families that is tied to the federal EITC, meaning individuals generally must claim the federal credit first to be eligible for the state credit.

Committee Categories

Government Affairs

Sponsors (3)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 05/07/2026)

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