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A4129
ASSEMBLY, No. 4129
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblywoman� CAROL A. MURPHY
District 7 (Burlington)
Assemblywoman� ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
���� Doubles amount of State child tax credit; raises age
and income eligibility criteria needed to receive credit.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
expanding the State child tax credit, and amending
P.L.2022, c.24.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 1 of P.L.2022,
c.24 (C.54A:4-17.1) is amended to read as follows:
���� 1.��� a.� A resident taxpayer
with New Jersey taxable income of
[
$80,000
]
$150,000
or less shall be allowed a credit against the tax otherwise due pursuant to the
�New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq.
,
for each child
who has not attained the age of
[
six
]
18
years as of the close of the taxable year and for which the taxpayer is allowed
a deduction under N.J.S.54A:3-1.
���� The credit shall be in the
following amounts:
����������� If the taxable income
is:������������������������������� The credit is:
����������� $30,000 or under�������������������������������������������
[
$1,000
]
$2,000
�����������
[
over $30,000
but not over $40,000
��������
$800
����������� over $40,000 but not
over $50,000�������������� $600
����������� over $50,000 but not
over $60,000�������������� $400
����������� over $60,000 but not
over $80,000�������������� $200
]
�����������
over $30,000 but not
over $50,000�������������� $1,800
�����������
over $50,000 but not
over $70,000�������������� $1,600
�����������
over $70,000 but not
over $90,000�������������� $1,400
�����������
over $90,000 but not
over $110,000������������ $1,200
�����������
over $110,000 but
not over $130,000���������� $1,000
�����������
over $130,000 but
not over $150,000���������� $800
���� The income limit set forth in
this section shall apply to taxpayers of any filing status.
���� b.��� A taxpayer shall be
allowed the credit pursuant to this section whether the taxpayer uses a Social
Security number or an Individual Taxpayer Identification Number on their tax
forms.
���� c.���� If the amount of the
credit allowed pursuant to this section exceeds the amount of tax otherwise due
pursuant to the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., after
all other credits and deductions, the amount of excess shall be treated as a
refundable overpayment.
���� d.��� To qualify for the
credit allowed pursuant to this section, a taxpayer shall file a joint return
if the taxpayer is married, except for a taxpayer who files as a head of
household or surviving spouse for federal income tax purposes for the taxable
year.
���� e.���� In the case of a
part-year resident, the amount of the credit allowed pursuant to this section
shall be pro-rated, based upon that proportion which the total number of months
of the taxpayer�s residency in the taxable year bears to 12 in that period.�
For this purpose, 15 days or more shall constitute a month.
���� f.���� Any tax credit pursuant
to this section shall not be taken into account as income for purposes of
determining the eligibility of an individual for benefits or assistance or the
amount or extent of benefits or assistance under any State program and, to the
extent permitted by federal law, under any State program financed in whole or
in part with federal funds.
���� g.��� The Division of Taxation
shall issue data as part of the annual tax expenditure report, as required by
section 1 of P.L.2009, c.189 (C.52:27B-20a) to include the number of taxpayers
claiming the New Jersey Child Tax Credit, as well as claimants� income, the
number of children benefitting, and the average credit amount per child and per
claimant.
(cf: P.L.2023, c.72, s.1)
���� 2.��� This act shall take
effect immediately and shall apply to taxable years beginning on or after
January 1, 2026.
STATEMENT
���� This bill would revise various
aspects of the State child tax credit.� Under current law, taxpayers with
incomes of $80,000 or less and children under the age of six are eligible for
an income tax credit of between $200 and $1,000 per child.� The amount of the
credit a taxpayer receives each year is based on the extent to which the
taxpayer exceeds certain income thresholds.� The credit amount gradually
decreases as a taxpayer�s income increases before being completely phased out
once the taxpayer�s income exceeds $80,000.�
���� The bill would raise the age
limit of an eligible child from under age six to under age 18, raise the income
limit needed to qualify for the credit from $80,000 to $150,000, and increase
the amount of the credit.� The bill would also make changes to the income
thresholds at which a reduction in the credit occurs and change the income
intervals at which those reductions would occur.� Currently, a reduction in the
credit occurs for every $10,000 increase in income, with the exception of those
taxpayers with incomes between $60,000 and $80,000.� The bill would instead
have reductions in the credit occur for every $20,000 of additional income
earned in excess of $30,000 to allow taxpayers to continue claiming a higher
credit.� Taxpayers with incomes of less than $30,000 would have their credit
amount doubled from $1,000 to $2,000 with corresponding credit reductions of
$200 as a taxpayer�s income approaches $150,000.� Under the bill, the credit is
completely phased out once a taxpayer�s income exceeds $150,000. �A summary of
the bill�s proposed income and credit amounts are as follows:
Proposed New Jersey Taxable
Income Amount
Proposed Credit Amount
$30,000 or under
$2,000
over $30,000 but not over $50,000
$1,800
over $50,000 but not over $70,000
$1,600
over $70,000 but not over $90,000
$1,400
over $90,000 but not over $110,000
$1,200
Over $110,000 but not over
$130,000
$1,000
Over $130,000 but not over
$150,000
$800