Bill Text: NJ A6071 | 2020-2021 | Regular Session | Amended
Bill Title: Revises gross income tax credit for child and dependent care expenses.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Introduced - Dead) 2021-12-02 - Substituted by S4065 (2R) [A6071 Detail]
Download: New_Jersey-2020-A6071-Amended.html
ASSEMBLY, No. 6071
STATE OF NEW JERSEY
219th LEGISLATURE
INTRODUCED NOVEMBER 8, 2021
Sponsored by:
Assemblywoman GABRIELA M. MOSQUERA
District 4 (Camden and Gloucester)
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman LISA SWAIN
District 38 (Bergen and Passaic)
Assemblywoman BRITNEE N. TIMBERLAKE
District 34 (Essex and Passaic)
Co-Sponsored by:
Assemblyman Benson
SYNOPSIS
Revises gross income tax credit for child and dependent care expenses.
CURRENT VERSION OF TEXT
As reported by the Assembly Appropriations Committee on November 15, 2021, with amendments.
An Act concerning the gross income tax credit for child and dependent care expenses, amending P.L.2018, c.45.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.2018, c.45 (C.54A:4-17) is amended to read as follows:
5. a. A resident taxpayer with New Jersey taxable income of [$60,000] $150,000 or less who is allowed a credit for expenses for household and dependent care services for federal income tax purposes pursuant to section 21 of the Internal Revenue Code (26 U.S.C. s.21) 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. The credit shall be in an amount equal to a percentage of the credit allowed the taxpayer for federal income tax purposes for the taxable year, according to the following schedule:
NJ taxable income is: Amount of NJ credit is:
[Not over $20,000 50% of federal credit
over $20,000 but not over $30,000 40% of federal credit
over $30,000 but not over $40,000 30% of federal credit
over $40,000 but not over $50,000 20% of federal credit
over $50,000 but not over $60,000 10% of federal credit.]
Not over $30,000 50% of federal credit
over $30,000 but not over $60,000 40% of federal credit
over $60,000 but not over $90,000 30% of federal credit
over $90,000 but not over $120,000 20% of federal credit
over $120,000 but not over $150,000 10% of federal credit.
[The credit allowed by this section for a taxable year shall not exceed $500 for employment-related expenses paid by the taxpayer for one qualifying individual and $1,000 for employment-related expenses paid by the taxpayer for two or more qualifying individuals.] The [$60,000] $150,000 income limit set forth in this subsection shall apply to taxpayers of any filing status.
b. [A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than zero.] If the amount of the credit allowed pursuant to this section exceeds the amount of gross income tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., the amount of excess shall be treated as a refundable overpayment. 1[The Director of the Division of Taxation shall determine the order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law.]1
c. Married couples shall file a joint return in order to claim the credit provided by this section. A taxpayer eligible to receive a credit pursuant to paragraph (3) or (4) of subsection (e) of section 21 of the federal Internal Revenue Code (26 U.S.C. s.21) shall be eligible for the credit provided by this section, provided the taxpayer satisfies the income limit set forth in subsection a. of this section.
d. In the case of a part-year resident claimant, 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 claimant's residency in the taxable year bears to 12 in that period. For this purpose, 15 days or more shall constitute a month.
(cf: P.L.2018, c.45, s.5)
2. This act shall take effect immediately and shall apply retroactively to taxable years beginning on and after January 1, 2021.