This bill amends the existing child tax credit provisions in New Jersey to expand eligibility and increase the credit amounts for taxpayers with children ages six to 11. Specifically, it allows a credit for each child under the age of 12, replacing the previous limit of under six years old. For the tax years 2023 and 2024, the credit for children under six will be $750 for those with an income of $30,000 or less, with a gradual reduction for higher income levels, while the credit for children ages six to 11 will be $500 for the same income bracket. The credit will phase out completely for incomes exceeding $80,000.

Starting in 2025, the credit for children under six will increase to $1,000 for those earning $30,000 or less, and the credit for children ages six to 11 will rise to $600 for the same income level. The incremental reductions and phase-out thresholds remain consistent with the previous provisions. The bill also stipulates that the credit will not be counted as income for determining eligibility for state benefits and requires the Division of Taxation to report on the number of taxpayers claiming the credit and related statistics.

Statutes affected:
Introduced: 54A:4-17.1