This bill proposes an increase in the benefit amount under the New Jersey Earned Income Tax Credit (EITC) program from 40 percent to 60 percent of the federal benefit amount, effective for Tax Year 2022. The EITC program, which operates in conjunction with the federal EITC, is designed to provide tax relief to low- to moderate-income workers and families. Currently, eligible residents can claim a refundable tax credit under the New Jersey gross income tax that is calculated as a percentage of the federal EITC, with the percentage gradually increasing over the years.

The specific legal amendments include the deletion of the current provision that sets the benefit at 40 percent for taxable years beginning on or after January 1, 2020, and the insertion of new language that establishes the benefit at 60 percent for taxable years beginning on or after January 1, 2022. This change aims to enhance financial support for eligible individuals and families, thereby improving their economic stability.

Statutes affected:
Introduced: 54A:4-7