WeVote
Log In

Bill

Bill

A 4949

Provides gross income tax credit for volunteer first responders who incur costs for child care services.

2026-2027 Regular Session

Provides a 50% tax credit (up to $5,000) for eligible volunteer first responders’ child care costs, requiring 150 hours worked and supporting documentation.

Introduced, Referred to Assembly Public Safety and Preparedness Committee
0
WeVote Research Nonpartisan
Bill Summary · A 4949

Bill Overview

  • Bill: A 4949 (New Jersey, 222nd Session)
  • Title: Provides gross income tax credit for volunteer first responders who incur costs for child care services
  • Status: Introduced May 7, 2026; referred to Assembly Public Safety and Preparedness Committee
  • Jurisdiction: New Jersey

Purpose and Intent

The bill would create a New Jersey gross income tax credit to assist volunteer first responders with child care costs incurred while performing or training for their duties. The aim is to reduce financial barriers to volunteering by ensuring caregivers can meet work-related hours without bearing excessive child care expenses.

Key Provisions

  • Credit Amount
    • Eligible taxpayers may receive a credit equal to 50% of eligible child care expenses paid during the tax year.
    • The credit is capped at $5,000 per volunteer first responder per tax year.
  • Eligibility Threshold
    • A volunteer must work at least 150 hours during the tax year in their official capacity as a volunteer first responder (hours include required training).
  • Eligible Expenses (Child Care)
    • Actual costs paid for child care services for the taxpayer’s dependent.
    • Includes in-home or out-of-home care, care at licensed facilities (e.g., day care centers), after-school care programs, nursery/preschool, and day camps.
  • Documentation and Claiming
    • Taxpayers must attach documentation to their New Jersey Gross Income Tax return substantiating eligibility and incurred child care expenses, in a form prescribed by the Director of the Division of Taxation.
  • Interplay with Other Tax Provisions
    • The credit’s application against other credits and tax payments is directed by the Director. The credit cannot reduce tax liability below zero.
  • Definitions
    • “Volunteer first responder” includes a volunteer firefighter or a volunteer member of a duly incorporated first aid, emergency, ambulance, or rescue squad association.

Who Is Affected

  • Primary Beneficiaries: Individuals who are volunteer first responders (firefighters or members of incorporated first aid/EMS/rescue squads) and incur qualifying child care expenses.
  • Dependent Coverage: Applies to the taxpayer’s dependent child(ren) as part of qualifying child care costs.
  • Tax Administration: Requires specific documentation and coordination with the Division of Taxation for claiming the credit.

Procedural and Timeline Details

  • Effective Date: Immediate effect, applicable to tax years beginning on or after January 1 following enactment.
  • Compliance: Requires submission of substantiating documentation with the tax return.
  • Administrative Process: The Director of the Division of Taxation would establish forms, procedures, and the order of applying this credit in relation to other credits.

Potential Impact and Considerations

  • Financial Relief: Provides a tangible subsidy for child care, potentially enabling more individuals to volunteer as first responders.
  • Administrative Burden: Adds documentation requirements for taxpayers and new administrative rules for the director to determine credit priority and interaction with other credits.
  • Cap and Eligibility: The $5,000 cap and 150-hour threshold set clear limits on eligibility, balancing incentive with fiscal impact.
  • Policy Context: Aligns with workforce support for critical public safety roles and family-friendly policies for essential volunteers.

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

Sign in to ask a question.