FISCAL NOTE
ASSEMBLY, No. 5672
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 26, 2023
SUMMARY
Synopsis: Increases child tax credit under gross income tax.
Type of Impact: Annual State revenue loss to Property Tax Relief Fund.
Agencies Affected: Department of the Treasury.
Executive Estimate
Fiscal Impact FY 2024 and Each FY Thereafter
Additional Annual State Revenue Loss $123.2 million
Office of Legislative Services Estimate
Fiscal Impact FY 2024 and Each FY Thereafter
Additional Annual State Revenue Loss $123.2 million to $141.1 million
 The Office of Legislative Services (OLS) concurs with the Executive’s estimate. The OLS
estimates that this bill will reduce revenues earmarked for the Property Tax Relief Fund by
$123.2 million to $141.2 million annually beginning in FY 2024. The Executive’s estimate
falls within this range.
 The OLS projects that taxpayers will claim the child tax credit for about 311,000 to 372,000
dependent children under the age of six for calendar year 2023 in FY 2024. Taxpayers are
estimated to claim the bill’s maximum credit of $1,000 per child for about 180,000 dependent
children. The rest of eligible taxpayers will claim credits between $200 and $800 per child.
 The tax credit is refundable, so taxpayers will be able to claim and utilize the full amount of
their tax credit.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill doubles the amount of the child tax credit currently provided to certain taxpayers. The
bill allows a gross income tax credit for each child of the taxpayer under the age of six years
starting in tax year 2023. The credit is refundable, meaning that any excess credit beyond the
taxpayer’s tax liability will be paid to the taxpayer as a tax refund.
The credit is available to taxpayers who have a New Jersey taxable income of $80,000 or less in
accordance with the following schedule:
If the taxable income is: The credit is:
Not over $30,000 $1,000
over $30,000 but not over $40,000 $800
over $40,000 but not over $50,000 $600
over $50,000 but not over $60,000 $400
over $60,000 but not over $80,000 $200.
FISCAL ANALYSIS
EXECUTIVE BRANCH
According to information from the Executive, the gross income tax revenue forecast includes
a tax cut related to the expansion of the State’s Child Tax Credit, which is estimated at $123.2
million. The Executive estimated the number of dependents under the age of six in previous tax
years and made projections for future tax years. The estimated cost of the proposal is determined
by multiplying the number of dependents under the age of six by various incomes to their
corresponding tax credit per child.
OFFICE OF LEGISLATIVE SERVICES
The OLS concurs with the Executive. The OLS estimates that taxpayers will claim the tax
credit for 311,000 to 372,000 children for calendar year 2023. Taxpayers will be able to claim the
bill’s maximum credit of $1,000 per child for about 180,000 dependent children under the age of
six. The rest of the affected taxpayers will claim a tax credit between $200 and $800. The OLS
estimates that the bill may reduce annual revenues earmarked for the Property Tax Relief Fund by
a low end estimate of $123.2 million and a high end estimate of $141.1 million. The OLS notes
that the tax credit is refundable, so taxpayers will be able to claim and utilize the full amount of
their tax credit.
Section: Revenue, Finance, and Appropriations
Analyst: Patrick Walsh
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 54A:4-17.1
Advance Law: 54A:4-17.1
Pamphlet Law: 54A:4-17.1