SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 2523

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 27, 2022

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 2523, with committee amendments.

      The bill, as amended, allows resident taxpayers to claim a child tax credit under the gross income tax.  Under the bill, as amended, the credit amount is $500 per child of the taxpayer if the taxpayer’s income is $30,000 or less.  The $500 amount is reduced by $100 for every $10,000 of income that the taxpayer’s taxable income exceeds $30,000 until the taxpayer’s income reaches $80,000.  A taxpayer will be allowed to claim the credit whether the taxpayer uses a Social Security number or an Individual Taxpayer Identification Number (ITIN) on their tax forms.  The credit is refundable, meaning that any excess credit beyond the taxpayer’s tax liability will be paid to the taxpayer in the form of a tax refund.

COMMITTEE AMENDMENTS:

      The committee amendments: (1) remove the provision establishing the New Jersey Child Tax Credit program; (2) provide that only resident taxpayers are eligible for the credit; (3) change the amount of the credit so that for every $10,000 of income that the taxpayer’s taxable income exceeds $30,000, the $500 credit amount is reduced by $100; and (4) change the bill’s effective date so that the bill applies to taxable years beginning on and after January 1, 2023.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.