Establishes corporation business tax and gross income tax credits for certain providers of child care that undertake certain quality improvement initiatives.
Impact
If enacted, A2662 would significantly impact state laws regarding child care providers by encouraging the enhancement of quality standards across the state. By linking tax credits directly to the ratings provided by Grow NJ Kids, the bill not only incentivizes improved care but also aligns with state efforts to elevate early childcare education. However, it mandates that providers cannot claim credits for ratings already attained, safeguarding against repetitive benefits, thus ensuring the credit program remains a genuine incentive for continual improvement.
Summary
Assembly Bill A2662 aims to enhance child care providers' quality in New Jersey by establishing corporation business tax and gross income tax credits for those that achieve specific quality improvement standards under the Grow NJ Kids program. The bill provides incentives for licensed child care centers and family day care providers by offering credits based on their earned quality ratings. The credits vary depending on the number of children enrolled and the star rating achieved. Providers awarded a three, four, or five-star rating can benefit from credits ranging from $275 to $2,400, which can be carried forward if unused in the taxable year.
Contention
Despite its positive objectives, the bill has faced scrutiny regarding the potential implications for smaller and less established child care providers. Critics may argue that the requirements set forth for achieving higher ratings could pose challenges for these institutions, potentially creating disparities in the ability to access the tax credits. Furthermore, there is contention over how effectively the credits can lead to an overall improvement in child care quality and whether they sufficiently address the broader systemic issues within the childcare sector, such as accessibility and financial sustainability.
Establishes "Support for Victims of Domestic Violence Program"; incentivizes certain businesses to provide support to individuals who are victims of domestic violence.
Establishes "Support for Victims of Domestic Violence Program"; incentivizes certain businesses to provide support to individuals who are victims of domestic violence.