New Jersey Senate Bill S1568

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

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 bill is designed to support low- to middle-income families by expanding access to the Child Tax Credit, thus potentially reducing financial burdens associated with raising children. For taxpayers with taxable incomes of $80,000 or less, the bill structures credits based on varying income thresholds, with the aim of providing substantial aid to those earning under $30,000. Over the course of its implementation, the credit will vary according to the taxpayer’s income, but it will also be phased out entirely once the income exceeds $80,000.

Summary

Bill S1568, introduced in New Jersey, aims to expand the state's Child Tax Credit program by providing credits for taxpayers with children aged six to eleven. It proposes to increase the credit amounts over a two-year period, enhancing financial support for families with young children. The current law provides a credit for children under age six, with adjustments based on the taxpayer's income levels, and the new bill seeks to include a broader age range while also increasing benefits for eligible families.

Contention

While proponents of S1568 emphasize its benefits for families and the promotion of economic stability for lower-income households, there may be discussions regarding budget implications and whether the expansion of the tax credit could lead to legislation interfering with state funding allocations. There may also be debates on whether the eligibility and phase-out income limits adequately address the needs of families, particularly those on the edge of the income thresholds who could be significantly affected by these changes.