(s4531-introduced)Senate Bill 4531 (2026-2027 session), as introduced#
(s4531-introduced)(block-1)S4531#
SENATE, No. 4531
STATE OF NEW JERSEY
222nd LEGISLATURE
INTRODUCED JUNE 26, 2026
Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblywoman ELIANA PINTOR MARIN
District 29 (Essex and Hudson)
Assemblywoman MARISA SWEENEY
District 25 (Morris and Passaic)
Assemblywoman MAUREEN ROWAN
District 2 (Atlantic)
Assemblywoman MARGIE DONLON, M.D.
District 11 (Monmouth)
Assemblyman MICHAEL VENEZIA
District 34 (Essex)
Co-Sponsored by:
Senators Scutari, Timberlake, Turner, Singleton, McKeon, Assemblymen Singh, Spearman, Assemblywoman Morales, Assemblyman Kearney, Assemblywomen Speight, Brennan and Drulis
SYNOPSIS
Increases amount of child tax credit in taxable years 2026, 2027, and 2028.
CURRENT VERSION OF TEXT
As introduced.
An Act increasing the amount of the child tax credit in certain taxable years and amending P.L.2022, c.24.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2022, c.24 (C.54A:4-17.1) is amended to read as follows:
1. a. A resident taxpayer with New Jersey taxable income of $80,000 or less shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. for each child who has not attained the age of six years as of the close of the taxable year and for which the taxpayer is allowed a deduction under N.J.S.54A:3-1.
[ The ] Except in taxable years 2026, 2027, and 2028, the credit shall be in the following amounts:
If the taxable income is: The credit is:
$30,000 or under $1,000
over $30,000 but not over $40,000 $800
over $40,000 but not over $50,000 $600
over $50,000 but not over $60,000 $400
over $60,000 but not over $80,000 $200
In taxable years 2026, 2027, and 2028, the credit shall be in the following amounts:
If the taxable income is: The credit is:
$30,000 or under $1,250
over $30,000 but not over $40,000 $1,000
over $40,000 but not over $50,000 $750
over $50,000 but not over $60,000 $500
over $60,000 but not over $80,000 $250
The income limit set forth in this section shall apply to taxpayers of any filing status.
b. A taxpayer shall be allowed the credit pursuant to this section whether the taxpayer uses a Social Security number or an Individual Taxpayer Identification Number on their tax forms.
c. If the amount of the credit allowed pursuant to this section exceeds the amount of tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., after all other credits and deductions, the amount of excess shall be treated as a refundable overpayment.
d. To qualify for the credit allowed pursuant to this section, a taxpayer shall file a joint return if the taxpayer is married, except for a taxpayer who files as a head of household or surviving spouse for federal income tax purposes for the taxable year.
e. In the case of a part-year resident, the amount of the credit allowed pursuant to this section shall be pro-rated, based upon that proportion which the total number of months of the taxpayer's residency in the taxable year bears to 12 in that period. For this purpose, 15 days or more shall constitute a month.
f. Any tax credit pursuant to this section shall not be taken into account as income for purposes of determining the eligibility of an individual for benefits or assistance or the amount or extent of benefits or assistance under any State program and, to the extent permitted by federal law, under any State program financed in whole or in part with federal funds.
g. The Division of Taxation shall issue data as part of the annual tax expenditure report, as required by section 1 of P.L.2009, c.189 (C.52:27B-20a) to include the number of taxpayers claiming the New Jersey Child Tax Credit, as well as claimants' income, the number of children benefitting, and the average credit amount per child and per claimant
(cf: P.L.2023, c.72, s.1)
2. This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2026.
STATEMENT
This bill increases the amount of the child tax credit in taxable years 2026, 2027, and 2028.
Current law provides for a credit against the New Jersey gross income tax to a resident taxpayer with income of $80,000 or less for each child under age six. The amount of the credit depends upon the taxable income of a taxpayer. Specifically, current law provides for a child tax credit in the following amounts:
If the taxable income is: The credit is:
$30,000 or under $1,000
over $30,000 but not over $40,000 $800
over $40,000 but not over $50,000 $600
over $50,000 but not over $60,000 $400
over $60,000 but not over $80,000 $200
Under the bill, the child tax credit amounts are temporarily increased for taxable years 2026, 2027, and 2028, after which the child tax credit amounts are to return to the amounts listed above. Specifically, the bill increases the child tax credit to the following amounts during taxable years 2026, 2027, and 2028:
If the taxable income is: The credit is:
$30,000 or under $1,250
over $30,000 but not over $40,000 $1,000
over $40,000 but not over $50,000 $750
over $50,000 but not over $60,000 $500
over $60,000 but not over $80,000 $250