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New Jersey Legislature· S4531Approved by the Governor; P.L.2026, c.26

Increases amount of child tax credit in taxable years 2026, 2027, and 2028, the official text

Shown verbatim: the complete text as captured from the official page posted by the New Jersey Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the introduced version. The official bill page.
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
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