This bill amends the current child tax credit provisions in New Jersey to expand eligibility and increase the credit amounts for taxpayers with children ages six to 11. Under the proposed changes, resident taxpayers with a taxable income of $80,000 or less will be eligible for a credit for each child under the age of 12, as opposed to the previous limit of under six years old. The bill outlines specific credit amounts for different income brackets, with the credit for children under six increasing to $750 for the 2023 and 2024 tax years, and then to $1,000 starting in 2025. For children ages six to 11, the credit will be $500 for the 2023 and 2024 tax years, increasing to $600 in 2025.

The bill also includes provisions for the credit to be refundable if it exceeds the taxpayer's tax liability, and it ensures that the credit will not be counted as income for eligibility in state assistance programs. Additionally, the Division of Taxation is required to report data on the number of taxpayers claiming the credit, their income levels, and the average credit amount. Overall, this legislation aims to provide greater financial support to families with children, particularly those in lower income brackets.

Statutes affected:
Introduced: 54A:4-17.1