This bill establishes a child care contribution tax credit for employers in New Jersey who are subject to the Corporation Business Tax (CBT) or the Gross Income Tax (GIT). The credit allows employers to receive a tax reduction equal to 50% of certain child care-related expenses incurred during the privilege period, with a maximum credit of $100,000 per taxpayer. Eligible expenses include costs associated with the acquisition, construction, or operation of qualified child care centers primarily for employees' children, as well as payments made to subsidize child care services. The total amount of tax credits available under this program is capped at $10 million per tax year. Employers must submit applications to the Commissioner of Labor and Workforce Development, who will review and approve them to ensure compliance with the cap.

Additionally, the bill allows for the transfer of tax credits to other taxpayers under certain conditions, enabling effective utilization within the state's tax framework. Employers can apply for a tax credit transfer certificate, which can be sold to other entities with tax liabilities for at least 75% of the transferred credit amount. The bill also defines "child care services" and "qualified child care center," outlining specific eligibility criteria. Furthermore, it mandates an annual evaluation by the Commissioner of Labor and Workforce Development, in consultation with other state officials, to assess the impact of these tax credits on child care availability and employee satisfaction, with a report to be submitted to the Governor and Legislature.