Today, Assemblywoman Verlina Reynolds-Jackson (D-Trenton) introduced legislation to expand and improve the New Jersey Child Tax Credit (CTC) to further reduce child poverty and support working families facing rising costs.
The proposal, A-5214, would increase the tax credit over two years for children under 6 years old — doubling the maximum credit from $500 to $1,000 — and expand eligibility for the program to include children age 6 through 11. The expansions would build on a policy with a proven track record of success at both the federal and state levels in directly assisting families.
“Our children are our future, and we must do everything we can to support them,” said Assemblywoman Verlina Reynolds-Jackson (D-Trenton), sponsor of the Child Tax Credit expansion bill. “The Child Tax Credit recognizes the high costs of raising kids, especially now as families face rising prices for groceries, housing, clothing, and other basic needs. This bill would provide much-needed relief for families by expanding the Child Tax Credit with larger benefits and so more children qualify. When families have the resources they need, it sets their kids up for success now and later in life.”
The expansion is similar to one proposed in a recent report by New Jersey Policy Perspective (NJPP), which found that an estimated 441,000 families across New Jersey would benefit from the expanded tax credit, including 713,000 children in households receiving the tax credit.
“Expanding the Child Tax Credit is a smart investment in the state’s future,” said Louis Di Paolo, Communications Director at New Jersey Policy Perspective (NJPP). “This proposal helps kids, targets relief to families who need it most, and will have both immediate and long-term benefits for the families who receive it and the broader economy. Policies like this are how we make New Jersey affordable for families struggling to keep up with rising costs.”
The expanded tax credit would be available to New Jersey families with annual incomes up to $80,000. After two years, the tax credit would break down as follows:
- Households with an income of $30,000 or less will receive a tax credit of $1,000 for each child under 6, and $600 for each child age 6 through 11.
- Households with an income of $30,000 to $40,000 will receive a tax credit of $800 for each child under 6, and $500 for each child age 6 through 11.
- Households with an income of $40,000 to $50,000 will receive a tax credit of $600 for each child under 6, and $400 for each child age 6 through 11.
- Households with an income of $50,000 to $60,000 will receive a tax credit of $500 for each child under 6, and $300 for each child age 6 through 11.
- Households with an income of $60,000 to $80,000 will receive a tax credit of $300 for each child under 6, and $200 for each child age 6 through 11.
The original New Jersey CTC, also sponsored by Asw. Reynolds-Jackson, passed in June 2022 by a 31-6 vote in the Senate and 72-2 vote in the Assembly. Families with children under six years old started receiving their CTC payments earlier this year at the start of tax season.
