This bill proposes an expansion of the child tax credit eligibility for resident taxpayers in New Jersey, allowing those with children aged six to 11 to qualify for the credit. Currently, the credit is only available for children under the age of six. The bill amends Section 1 of P.L.2022, c.24 (C.54A:4-17.1) to specify that a resident taxpayer with New Jersey taxable income of $80,000 or less can receive a credit for each child who has not attained the age of 12 as of the close of the taxable year. The credit amounts remain the same, with $1,000 for incomes of $30,000 or less, gradually decreasing for higher income brackets, and phasing out completely for incomes exceeding $80,000.

The bill also maintains existing provisions regarding the filing requirements, treatment of the credit as a refundable overpayment if it exceeds the tax due, and the exclusion of the credit from income calculations for state benefits eligibility. Additionally, the Division of Taxation is tasked with reporting data on the number of taxpayers claiming the credit, their income, and the average credit amount. This act is set to take effect immediately and will apply to taxable years beginning on or after January 1, 2026.

Statutes affected:
Introduced: 54A:4-17.1