This bill amends the New Jersey gross income tax credit for child and dependent care expenses by expanding eligibility and increasing the credit amount. It removes the previous income cap of $150,000 for resident taxpayers and introduces new income brackets for married individuals filing jointly, head of household, or surviving spouses, raising the eligibility limit to $250,000. For other filing statuses, the $150,000 limit remains in place. Additionally, the bill allows married individuals filing separately to qualify for the credit if they meet the income criteria for single filers and would have been eligible for the federal credit but for the joint filing requirement.

The bill also increases the percentage of the federal credit that taxpayers can claim as a New Jersey credit. For instance, taxpayers with an income of less than $30,000 will now receive 60% of the federal credit, up from the previous 50%. The credit amounts for all other income brackets have similarly been increased by 10 percentage points. This legislation aims to provide greater financial support for families incurring child and dependent care expenses, thereby enhancing the overall affordability of such services.

Statutes affected:
Introduced: 54A:4-17