This bill establishes 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 varies based on the provider's gross income, with higher credits available for those earning less than $25,000 and decreasing for income brackets up to $45,000. Specifically, the credit can be as high as $1,500 for those providing care to children from birth to 30 months for individuals earning under $25,000.

Additionally, the bill stipulates that for staff members and providers with gross incomes under $45,000, any unused credit can be refunded if their tax liability is reduced to zero. For those earning $45,000, any remaining credit can be carried forward to the next taxable year, but not beyond that. Importantly, the credits provided under this bill will not be considered as income or receipts when determining eligibility for state benefits or assistance programs. This measure 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 system in New Jersey.