This bill amends the New Jersey Gross Income Tax Act to temporarily increase the child tax credit for resident taxpayers with taxable income of $80,000 or less during the taxable years 2026, 2027, and 2028. The current law provides a credit based on income brackets, with amounts ranging from $1,000 for those earning $30,000 or less to $200 for those earning between $60,000 and $80,000. The bill modifies these amounts for the specified years, increasing the credit to $1,250 for incomes of $30,000 or under, and adjusting the other brackets accordingly, with the highest credit being $1,000 for incomes over $30,000 but not exceeding $40,000.

Additionally, the bill clarifies that the income limit applies to taxpayers of any filing status and allows the credit to be claimed regardless of whether the taxpayer uses a Social Security number or an Individual Taxpayer Identification Number. It also stipulates that any excess credit beyond the tax due will be treated as a refundable overpayment. The Division of Taxation is tasked with reporting data on the number of taxpayers claiming the credit and related statistics. The 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
Advance Law: 54A:4-17.1