LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2243
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: NOVEMBER 21, 2024
SUMMARY
Synopsis: Allows gross income tax credit for certain child care staff and
registered family day care providers.
Type of Impact: Annual State revenue loss to Property Tax Relief Fund.
Agencies Affected: Department of the Treasury.
Office of Legislative Services Estimate
Fiscal Impact FY 2026 and Each FY Thereafter
Annual State Revenue Loss $12 million to $24 million
 The Office of Legislative Services (OLS) estimates that this bill could reduce gross income tax
revenue by $12 million to $24 million annually.
 Based on Occupational Employment and Wage Statistics for New Jersey from the U.S. Bureau
of Labor Statistics, as of May 2023, there are approximately 41,600 childcare workers in New
Jersey. The OLS assumes that roughly 24,000 workers may qualify for tax credit awards
ranging from $500 to $1,000 based on the average incomes of the relevant professions.
BILL DESCRIPTION
This bill allows a gross income tax credit for staff members employed by a licensed child care
provider who directly supervise children and for registered family day care providers who, as
applicable, have been employed by a child care provider or worked as a registered family day care
provider for a continuous six month period during the taxable year.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
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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OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill could reduce gross income tax revenue by $12 million to $24
million annually. Based on Occupational Employment and Wage Statistics for New Jersey from
the U.S. Bureau of Labor Statistics, there are approximately 41,600 childcare workers in New
Jersey, as of May 2023. The OLS assumes that roughly 24,000 workers may qualify for tax credit
awards ranging from $500 to $1,000 based on the average incomes of the relevant professions.
The OLS notes that qualifying for the bill’s tax credits appears to be predicated on an
individual’s gross income. For purposes of this fiscal estimate, the OLS assumes that each worker
only has wage income and a spouse’s income is not considered. If a worker has other sources of
income, such as individual investment income, then those workers may be ineligible for the bill’s
tax credits if their total individual gross income exceeds $45,000. The OLS further notes that
determining whether the tax credits would be refundable appears to be based on all of the worker’s
gross income, including any income from a spouse. Thus, the actual impact of the bill’s tax credits
on revenue collections may be diminished as certain workers may be ineligible for a tax credit due
to income restrictions or a worker may not be able to utilize the full tax credit award for a given
tax year.
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.).