Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Impact
Under current legislation, New Jersey taxpayers earning $80,000 or less can claim a child tax credit for each child under age six, with the credit amount varying based on income levels, starting from $500 for those earning $30,000 or less. Senate Bill S248 proposes to incrementally increase these credit amounts, allowing for $750 for taxpayers with children under six during tax years 2023 and 2024, and further raising it to $1,000 starting in 2025 for those with the same income threshold. Also, it extends eligibility to families with children aged six to 11, presenting a $500 credit for 2023 and 2024 and increasing it to $600 thereafter.
Summary
Senate Bill S248 aims to expand the New Jersey Child Tax Credit program by providing a child tax credit specifically for taxpayers with children aged six to 11. The proposal also intends to increase the amount of the existing credit for taxpayers with children under age six over a period of two years, enhancing financial support for low-income families. The bill modifies Section 1 of P.L.2022, c.24 to reflect these changes, with specified income thresholds that determine the credit amounts available to eligible families.
Contention
There may be differing opinions regarding the allocation of fiscal resources to support such tax credits. Proponents of the bill argue that expanding the Child Tax Credit will directly benefit struggling families, making a significant difference in their financial stability. Critics, however, may raise concerns over the long-term sustainability of such tax credits and their impact on the state's budget, questioning whether increased spending on tax credits could lead to funding shortfalls in other essential services.
Carry Over
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Carry Over
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.
Same As
Provides child tax credit for taxpayers with children ages six to 11 and increases amount of credit for taxpayers with children under 12 over period of two years.