This bill proposes an increase in the child tax credit for resident taxpayers in New Jersey for the taxable years 2026, 2027, and 2028. Under current law, taxpayers with a taxable income of $80,000 or less are eligible for a credit based on the number of children under the age of six. The existing credit amounts are set at $1,000 for incomes of $30,000 or under, decreasing incrementally to $200 for incomes over $60,000 but not exceeding $80,000.

The new legislation amends the existing law to temporarily raise the credit amounts for the specified years. The revised credit amounts will be $1,250 for incomes of $30,000 or under, $1,000 for incomes over $30,000 but not exceeding $40,000, and so forth, down to $250 for incomes over $60,000 but not exceeding $80,000. After 2028, the credit amounts will revert to the previous levels. The bill 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