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S4212
SENATE, No. 4212
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 11, 2026
Sponsored by:
Senator� RAJ MUKHERJI
District 32 (Hudson)
Senator� BRITNEE N. TIMBERLAKE
District 34 (Essex)
Co-Sponsored by:
Senator McKnight
SYNOPSIS
���� Increases child tax credit amount under gross income
tax for resident taxpayers with children ages six and under and expands child
tax credit eligibility to resident taxpayers with children ages six to 11.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
expanding eligibility for 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.
(1)
� A
resident taxpayer with New Jersey taxable income of $80,000 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 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
for each child that has not attained the age of six years
:
����������� 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
]
$1,600
����������� over $40,000 but not
over $50,000��������������
[
$600
]
$1,200
����������� over $50,000 but not
over $60,000��������������
[
$400
]
$800
����������� over $60,000 but not
over $80,000��������������
[
$200
]
$400
���� The income limit set forth in
this section shall apply to taxpayers of any filing status.
����
(2)�� A resident taxpayer
with New Jersey taxable income of $80,000 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 attained the age of six
years but who has not attained the age of 12 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
�����������
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
����
The income limit set forth
in this section shall apply to taxpayers of any filing status.
����
(3)�� A taxpayer eligible
to receive a credit for more than one child pursuant to this section shall not
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. in an amount greater
than $2,500.
���� 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 and after
January 1, 2026.
STATEMENT
���� This bill increases the amount
of the State child tax credit to resident taxpayers with children under age
six.� Additionally, this bill expands eligibility for the child tax credit to
resident taxpayers with children ages six to 11.
���� Under current law, a resident
taxpayer with New Jersey taxable income of $80,000 or less is allowed a credit
against the State income tax for each child under age six. The amount of the
credit is $1,000 per child for taxpayers with incomes of $30,000 or less and is
incrementally reduced as certain income thresholds above $30,000 are met.� The
credit is completely phased out once a taxpayer�s income exceeds $80,000.
���� This bill expands eligibility
for the child tax credit to resident taxpayers with children between ages six
and 11 by specifying that the credit is available to taxpayers with children
who have attained the age of six but who have not attained the age of 12.�
Additionally, the bill provides an enhanced credit to resident taxpayers with
children who have not attained the age of six.� For taxpayers with children who
have not attained the age of six, the amount of the tax credit would be
doubled, so taxpayers with incomes of $30,000 or less would receive $2,000 per
eligible child.� However, under the bill, the maximum amount tax credits a
taxpayer may receive is $2,500.
���� This bill takes effect
immediately and applies to tax years beginning on and after January 1, 2026.