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Bill

Bill

S 2240

Provides temporary corporation business tax and gross income tax credits for certain employer-provided child care expenditures.

2024-2025 Regular Session Introduced by Nilsa Cruz-Perez and 6 co-sponsors

New Jersey bill creates temporary tax credits for employers providing child care assistance to employees, aiming to support workforce participation and business retention.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
#bustaxes #corporations #incometax
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WeVote Research Nonpartisan
Bill Summary · S 2240

Legislative bill overview

S 2240 creates temporary tax credits for New Jersey corporations and businesses that provide child care assistance to their employees. The credits would reduce state corporation business tax and gross income tax liability based on qualifying child care expenditures made by employers.

Why is this important

Child care costs are a significant barrier to workforce participation, particularly for lower and middle-income workers. Tax incentives for employer-provided child care could increase availability of affordable options while helping businesses recruit and retain employees—addressing both economic competitiveness and workforce participation challenges.

Potential points of contention

  • Fiscal cost and duration: The bill's temporary nature and revenue impact on the state budget are unclear; policymakers must weigh tax foregone against economic benefits
  • Equity concerns: Tax credits primarily benefit workers at companies large enough to offer child care benefits, potentially widening disparities for workers at smaller employers without such programs
  • Definition of qualifying expenditures: The specifics of what "certain employer-provided child care expenditures" include will determine whether credits support on-site facilities, subsidies, backup care, or other arrangements—affecting program scope and effectiveness

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

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