NJPP: State-level child tax credit would make New Jersey a more affordable place to raise a family

A state-level child tax credit would make New Jersey a more affordable place to raise a family, according to a new report from New Jersey Policy Perspective (NJPP).

In his report,Making New Jersey Affordable for Families: The Case for a State Child Tax Creditthe NJPP examined two possible child tax credit models at the state level. Both are modeled after a similar credit at the federal level and target families earning less than 250% of the federal poverty level, which equates to about $69,000 for a family of four.

One targets children under the age of 6 and the other includes all children under the age of 18 and dependent adults up to the age of 24. Using either proposal, a state-level child tax credit would provide immediate relief to low- and middle-income families with children, the NJPP claims.

The “young child tax credit” proposed in the report would provide a tax credit of up to $582 – and an average of $553 per household – for each eligible child and would affect approximately 186,000 households and 449,000 children. The “Children of All Ages Tax Credit” proposed in the report would provide a tax credit of up to $187 – and an average of $246 per household – for each eligible child and would affect approximately 424,000 households and 792,000 children.

According to the NJPP, each child tax credit would cost about $100 million.

“Making New Jersey affordable for families raising children means giving them the resources they need to meet day-to-day challenges,” Peter Chen, report author and senior policy analyst at NJPP, said in a statement.

“A child tax credit would help families deal with the high costs of food, rent, childcare and everything else children need to be happy and healthy,” added Chen. “The federal child tax credit has shown that this is a policy that works, and one that can and should be replicated at the state level.”