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Bill

MD

Bill

S 4531

Increases amount of child tax credit in taxable years 2026, 2027, and 2028.

2026-2027 Regular Session Introduced by Mitchelle Drulis and 14 co-sponsors

New Jersey increases the state child tax credit for 2026–2028, boosting credits to eligible families and reducing their state tax liability.

Approved P.L.2026, c.26.
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WeVote Research Nonpartisan
Bill Summary · S 4531

Overview

  • Bill: S 4531
  • Session: 222
  • Jurisdiction: New Jersey
  • Title: Increases amount of child tax credit in taxable years 2026, 2027, and 2028
  • Sponsor: Teresa Ruiz (Co-sponsor)

Purpose and Intent

The bill aims to increase the state child tax credit (CTC) for specific taxable years (2026, 2027, and 2028). By raising the credit amount, it seeks to provide greater financial support to eligible families with qualifying children, reducing tax liability and potentially offering increased net income for households with children.

Key Provisions

  • Increases the value of the New Jersey state child tax credit for the starting taxable year 2026, with subsequent adjustments for 2027 and 2028.
  • The bill specifies new, higher credit amounts applicable to each of the targeted tax years.
  • It may define eligibility criteria consistent with existing state CTC rules (e.g., income thresholds, number of qualifying children, filing status), and may align with or modify the current definition of “qualifying child” and related requirements.
  • The provision is time-limited to 2026–2028, after which the credit amount would revert or be subject to future legislative action unless renewed.

Affected Parties

  • Taxpayers who owe New Jersey state income tax and have qualifying children.
  • Households with dependent children that meet eligibility thresholds.
  • Taxpayers who may benefit more significantly if they previously phased out or were limited by prior credit amounts.

Procedural and Timeline Details

  • Effective years: Taxable years beginning in 2026 through 2028.
  • Compliance window: Applies to NJ resident individual income tax returns filed for those years (subject to annual conformity requirements with the state tax code and any administrative rules).
  • Sunset/renewal: As the bill covers only 2026–2028, a future measure would be required to extend, modify, or make permanent the increased credit amounts beyond 2028.

Potential Impacts

  • Financial: Increased credits reduce state tax liability for eligible families, potentially increasing after-tax income for households with children.
  • Economic: Higher credit amounts may influence household spending, savings, and poverty alleviation among low- to middle-income families.
  • Administrative: Requires state tax department implementation for the heightened credit, including any changes to forms, calculations, and compliance guidance.

Notes

  • Specific dollar amounts for the increased credit, income eligibility thresholds, and interaction with other credits are not provided here. For precise figures and any phase-in or phase-out rules, refer to the bill’s text and any fiscal impact statements.
  • The bill designates Teresa Ruiz as a co-sponsor, indicating legislative backing and potential alignment with related tax support policies.

Compiled from official sources — confirm details with the bill’s official record.

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