This bill establishes a gross income tax credit for staff members employed by licensed child care providers and registered family day care providers who directly supervise children. To qualify, these individuals must have been employed in their current position for a continuous six-month period during the taxable year. The credit amount varies based on income levels: those earning less than $25,000 can receive up to $1,500 for caring for children under 30 months, while those earning between $25,000 and $45,000 receive reduced amounts. Additionally, the credit is only applicable if the staff member or provider spends at least 50% of their employment time providing care to children from birth to 30 months.

The bill also stipulates that for individuals with a gross income of less than $45,000, any unused credit can be refunded if it reduces their tax liability to zero. For those earning $45,000, any remaining credit can be carried forward to the next taxable year, but not beyond that. 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 staff, addressing the staffing crisis exacerbated by the COVID-19 pandemic and supporting the overall child care system in New Jersey.