This bill proposes a gross income tax credit for certain child care staff and registered family day care providers in New Jersey, aimed at addressing the staffing crisis in the child care industry exacerbated by the COVID-19 pandemic. The credit is available to staff members who directly supervise children and have been employed for a continuous six-month period, with varying amounts based on their income levels. Specifically, those earning less than $25,000 can receive up to $1,500 for caring for infants and $1,000 for children over 30 months, while those with incomes between $25,000 and $45,000 will receive reduced amounts based on their earnings.

Additionally, the bill stipulates that for staff members earning less than $45,000, any unused credit can be refunded if their tax liability is reduced to zero, while those earning $45,000 can carry forward any remaining credit to the next taxable year. Importantly, the credit will not be considered as income for the purposes of determining eligibility for state benefits or assistance programs. This legislation aims to provide financial relief to child care providers and enhance the stability of the child care workforce in New Jersey.