New Jersey Assembly Bill A4640

New Jersey 2022-2023 Regular Session

• Introduced: 9/22/22
• Refer: 9/22/22
• Report Pass: 9/29/22

Caption

Provides for child tax credit to be available in Tax Year 2022.

Impact

The primary impact of A4640 is on the financial relief available to low-income families in New Jersey. Under the revised provisions, eligible taxpayers can claim a refundable tax credit of $500 for each child, provided their income does not exceed $30,000. This amount decreases incrementally for incomes between $30,000 and $80,000. By making this credit accessible sooner, the bill could play a crucial role in household financial management for many families in need.

Summary

Assembly Bill A4640 aims to amend the effective date for the child tax credit established by prior legislation, specifically P.L.2022, c.24. This bill stipulates that the provisions of the child tax credit shall apply to taxable years beginning on January 1, 2022, rather than the initially proposed 2023. By revising this date, the bill intends to provide earlier tax relief for families with children, specifically targeting those with lower incomes.

Contention

Discussions surrounding A4640 reveal that while the bill enjoys broad support due to its favorable implications for low-income families, there may still be debates over its long-term budgetary effects. Critics might raise concerns about the sustainability of such tax credits and their effect on state revenue. Nonetheless, supporters argue that the immediate benefits to families can outweigh potential deficits, given the aim of bolstering economic stability and addressing financial inequalities.