New Jersey Assembly Bill A5214

New Jersey 2022-2023 Regular Session

• Introduced: 2/23/23
• Refer: 2/23/23

Caption

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

The proposed changes to the Child Tax Credit structure will have a significant impact on state law by broadening eligibility criteria for tax credits for families. Taxpayers with an annual income up to $80,000 will be eligible for these credits, with amounts varying depending on their income level and the age of their children. The bill not only maintains the existing tax credits for children under age six but also opens new credit possibilities for those with children aged six to 11, thus addressing a critical gap in financial assistance for families with older children.

Summary

Bill A5214 aims to enhance the existing New Jersey Child Tax Credit program by specifically targeting taxpayers with children aged six to 11. Under this new legislation, eligible taxpayers will receive increased tax credits based on their income brackets, effectively expanding the benefit to a broader demographic. The bill proposes a gradual increase in the credit amounts over a two-year period, allowing for more financial relief to families in need during this time. This initiative reflects the state's commitment to supporting families through tax incentives amidst challenging economic circumstances.

Contention

Despite the positive outlook towards family financial support, there are several points of contention surrounding Bill A5214. Critics may express concerns regarding the funding and long-term sustainability of these tax credits, questioning whether such incentives could impose restrictions on other necessary state expenditures. Additionally, the phased nature of the credit increases might draw scrutiny, with some arguing that immediate relief is necessary given the current economic climate. Nonetheless, proponents argue that these enhancements are crucial for fostering economic security among families with young children.