Murphy signs bill to extend New Jersey child tax credit | national news

(The Center Square) – Gov. Phil Murphy has signed a measure to make more New Jersey families eligible for the state’s child and dependent tax credit.

S-4065 / A-6071 makes taxpayers earning $ 150,000 or less per year with child care and additional household expenses eligible for the child care and dependent care tax credit starting in tax year 2021 .

Previously, only taxpayers with incomes of $ 60,000 or less were eligible. The updated state credit is based on the federal credit, which the U.S. Federal Rescue Plan (ARP) updated for tax year 2021.

“This legislation will help ensure affordable access to child care, a critical part of getting New Jersey workers back into the workforce and reversing the ‘divestiture’ caused by the pandemic,” Murphy said in a statement. .

In addition, the bill makes the credit “refundable” in 2021. It also eliminates the current limit of $ 500 for employment-related expenses for one child or dependent and the limit of $ 1000 for two. children or dependents or more.

The New Jersey Business & Industry Association (NJBIA) was among the groups that supported the measure.

“This bill will help improve access to child care, which will help the industry and the entire workforce that depends on child care,” said director of government affairs of the NJBIA, Alexis Bailey, in a statement.

“Access to child care is the cornerstone of our economic recovery as we emerge from the pandemic,” added Bailey. “New Jersey continues to face unprecedented labor shortages across all industries. Nationally, our worker participation rate is at its lowest level in three decades. Any legislation like this that can increase access to child care services will help our state. “

In a November analysis, the Legislative Services Office (OLS) said the measure would result in a loss of revenue of $ 76.2 million for the state.