New Jersey Senate Bill S2229

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Increases benefit amounts and expands eligibility under New Jersey earned income tax credit program.

Impact

The legislation not only raises the amount of the NJEITC but also expands its eligibility to include taxpayers with Individual Taxpayer Identification Numbers (ITIN) and victims of domestic abuse. Previously, individuals without a Social Security number could not qualify, thereby excluding a significant number of potential beneficiaries. By altering the criteria, the bill acknowledges the diverse circumstances of New Jersey residents, allowing a broader population to gain access to vital tax relief.

Summary

Senate Bill S2229 seeks to enhance the New Jersey Earned Income Tax Credit (NJEITC) program by increasing the benefit amounts and broadening the eligibility criteria. The bill specifically proposes an increase in the credit from 40% to 45% of the federal earned income tax credit over a span of five years. This adjustment aims to provide greater financial relief to low-income taxpayers in New Jersey, effectively aligning state assistance with the needs of those eligible for federal support.

Contention

Notably, the bill includes provisions that exempt certain married taxpayers from the requirement to file jointly. This exemption is significant for victims of domestic abuse who might otherwise be precluded from receiving the credit due to their filing status. The definition of domestic abuse within the bill is comprehensive, aiming to protect those who have experienced various forms of coercion or mistreatment from their spouses. The contention surrounding these provisions lies in the balance between enabling support for victims while ensuring the integrity of the tax system.