This bill aims to enhance the New Jersey Earned Income Tax Credit (NJEITC) program by increasing benefit amounts and expanding eligibility criteria. Specifically, the bill raises the credit percentage from 40% to 45% over a five-year period, with incremental increases each year. Additionally, it allows taxpayers with Individual Taxpayer Identification Numbers (ITINs) to qualify for the NJEITC, addressing a gap where these individuals were previously ineligible due to the requirement of having a Social Security number for the federal earned income tax credit.

Furthermore, the bill modifies the eligibility requirements for victims of domestic abuse. It exempts married taxpayers from the joint filing requirement if they file as married filing separately and meet specific criteria, including living apart from their spouse and being a victim of domestic abuse within the past three years. This change is intended to ensure that victims of domestic abuse do not lose access to the NJEITC due to their filing status. Overall, the bill seeks to provide greater financial support to low- and moderate-income families in New Jersey.

Statutes affected:
Introduced: 54A:4-7