Bill Text: NJ A336 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes New Jersey Child Tax Credit program to benefit certain low-income households.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Community Development and Women's Affairs Committee [A336 Detail]
Download: New_Jersey-2024-A336-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman CLAIRE S. SWIFT
District 2 (Atlantic)
SYNOPSIS
Establishes New Jersey Child Tax Credit program to benefit certain low-income households.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act allowing a child tax credit under the gross income tax, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is established the New Jersey Child Tax Credit program in the Division of Taxation in the Department of the Treasury.
b. A resident taxpayer whose taxable income is not in excess of 250 percent of the federal poverty level 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 a taxpayer whose taxable income is equal to or less than 100 percent of the federal poverty level, the credit amount shall be $582 for each qualified younger child and $187 for each qualified older child. For every 10 percentage points that the taxpayer's taxable income exceeds 100 percent of the federal poverty level, the credit amount shall decrease by $36 for each qualified younger child and by $12 for each qualified older child.
c. 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 the taxpayer's tax forms.
d. 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.
e. 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.
f. 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.
g. 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.
h. 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.
i. As used in this section:
"Federal poverty level" means the poverty guidelines applicable to New Jersey based upon family size that are updated annually in the Federal Register by the United States Department of Health and Human Services under authority of 42 U.S.C. s.9902(2).
"Qualified older child" means an individual who: bears to the taxpayer a relationship described in section 152(c)(2) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.152; is a dependent of the taxpayer; and is at least six years of age but has not attained the age of 25 as of the close of the taxable year.
"Qualified younger child" means an individual who: bears to the taxpayer a relationship described in section 152(c)(2) of the federal Internal Revenue Code of 1986, 26 U.S.C. s.152; is a dependent of the taxpayer; and has not attained the age of six as of the close of the taxable year.
2. This act shall take effect immediately and shall apply retroactively to taxable years ending on and after the effective date.
STATEMENT
This bill establishes the New Jersey Child Tax Credit program, allowing a refundable gross income tax credit for each dependent child of a taxpayer whose annual income does not exceed 250 percent of the federal poverty level. Under the bill, "federal poverty level" means the poverty guidelines applicable to New Jersey based upon family size that are updated annually in the Federal Register by the United States Department of Health and Human Services under authority of 42 U.S.C. s.9902(2).
For taxpayers whose annual income does not exceed 100 percent of the federal poverty level, the credit amount will be $582 for each qualified younger child, meaning a dependent child who has not attained the age of six as of the close of the taxable year, and $187 for each qualified older child, meaning a dependent child who is at least six years of age but has not attained the age of 25 as of the close of the taxable year. For every 10 percentage points that the taxpayer's annual household income exceeds 100 percent of the federal poverty level, the credit amount will decrease by $36 for each qualified younger child of the taxpayer and by $12 for each qualified older child of the taxpayer until the taxpayer's annual income reaches 250 percent of the federal poverty level. A taxpayer will be allowed to claim the credit whether the taxpayer uses a Social Security number or an Individual Taxpayer Identification Number on the taxpayer's tax forms.
