ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5329

STATE OF NEW JERSEY

DATED:  JUNE 28, 2026

      The Assembly Budget Committee reports favorably Assembly Bill No. 5329.

      As reported, 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.

FISCAL IMPACT:

      The Department of the Treasury indicates that this bill would result in a $50 million revenue loss for fiscal year 2027.