This bill proposes 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 is tiered based on income levels: those earning less than $25,000 can receive up to $1,500 for caring for children from birth to 30 months, while those with incomes between $25,000 and $45,000 receive reduced credit 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 in the specified age group.

The bill also stipulates that for individuals with a gross income of less than $45,000, any unused credit can be refunded if their tax liability is reduced to zero. For those earning $45,000 or more, 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 or receipts when 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 industry in New Jersey.