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Bill > S4211
NJ S4211
NJ S4211Increases amount of allowable New Jersey earned income tax credit from 40 percent to 50 percent of federal benefit amount.
summary
Introduced
05/11/2026
05/11/2026
In Committee
05/11/2026
05/11/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill increases the amount of the allowable New Jersey earned income tax credit from 40 percent to 50 percent of the federal benefit amount beginning in tax year 2026. Currently, federal law allows taxpayers who meet certain income and age requirements to claim a refundable earned income tax credit for federal tax purposes. The amount of the authorized federal tax credit varies depending on several factors, including the taxpayer's income, qualifying dependents, and filing status. Similarly, State residents may also claim a refundable earned income tax credit under the New Jersey gross income tax based on a percentage of the taxpayer's authorized federal tax credit. Since tax year 2020, this percentage has been set at 40 percent of the federal benefit amount. It is the sponsor's intent to assist working families through an increased earned income tax credit. Historically, the earned income tax credit has been highly effective at reducing childhood poverty rates throughout the country, especially in states which offer the highest benefit rates.
AI Summary
This bill increases the New Jersey Earned Income Tax Credit (EITC) from 40% to 50% of the federal benefit amount for taxable years beginning on or after January 1, 2026. The EITC is a tax credit available to working individuals and families who meet certain income and age requirements, and it is designed to help reduce childhood poverty. Currently, New Jersey residents can claim a credit based on a percentage of the federal EITC they are eligible for, and this bill proposes to raise that percentage to 50% starting in 2026, aiming to provide further financial assistance to working families in the state.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 05/11/2026)
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/S4211 |
| BillText | https://pub.njleg.gov/Bills/2026/S4500/4211_I1.HTM |
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