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.
If enacted, A3428 would modify the existing tax credit framework in New Jersey by increasing the credit for children under six and also introducing credits for older children. For the years 2023 and 2024, eligible families would receive a credit of $750 for children under six and $500 for children ages six to eleven. Starting from 2025, the credit for children under six would rise to $1,000, and the credit for older children would increase to $600, creating a tiered structure intended to incentivize support for larger families under financial strain.
Assembly Bill A3428 seeks to expand the existing New Jersey Child Tax Credit program by offering credits to taxpayers with children aged six to eleven, in addition to upping the credit amounts for taxpayers with children under twelve. The legislation aims to address the financial needs of families, particularly those with lower income levels, as it introduces increased financial support over two years. Specifically, the bill outlines that taxpayers making $30,000 or less would receive greater credits compared to those with higher incomes, with the intent to alleviate the financial burden on low-income families.
Notably, there may be discussions regarding the potential financial implications this expanded tax credit could have on state revenue. Critics of such credits often express concerns about the sustainability of tax incentives and argue that they may lead to complications in budgeting at the state level. Furthermore, questions may arise on how these credits can be effectively administered and what safeguards are put in place to ensure qualified families can access the benefits without undue complications.