Just one day after an amended bill was passed by the Assembly, Gov. Phil Murphy signed legislation Oct. 4 fixing the timing of the state’s child tax credit.
The original measure was passed by the Legislature and signed by Murphy in late June. The law provides a refundable tax credit for state residents of up to $500 per year for each child under the age of 6 years old.
However, because of an error in that bill, Senate Bill 2523, it would not have taken effect until the 2023 tax year — which meant the credits would not be available for taxpayers until 2024. The amended measure, Senate Bill 3046/Assembly Bill 4640, accelerates the schedule so that parents can now receive the credits when they file their 2022 taxes.
“Tax relief is critically important and this amendment will put money into the pockets of families as early as next year,” said Murphy. “I look forward to our continued progress in making New Jersey stronger, fairer, and more affordable for all of our residents.”
The legislation was approved Monday by an overwhelming, bipartisan 67-4 vote in the Assembly, which followed a late September 29-6 vote in the Senate.
The five-tiered program, which is available to New Jersey families with incomes up to $80,000, tops out at $500 for each child in households with an income of $30,000 or less. That per-child credit drops by $100 in each tier as income goes up, until reaching the $60,000 to $80,000 threshold, when families will receive a $100 credit per child.
The legislation comes as New Jersey families face inflation and high interest rates, among other economic headwinds.
The correction was widely anticipated; the day after the original bill was signed, Murphy, legislative leaders and the measure’s sponsors, vowed a fix.
“Our working families need the relief of the state child tax credit and it has been our full intention to give it to them as they file their 2022 tax returns,” they said in a statement. “We are committed to working together to clarify this in the law.”
Senate President Nick Scutari, D-22nd District, says this measure will make the lives of working families more affordable and more manageable. “It will provide direct tax relief as quickly as possible to help families during challenging economic conditions,” he said. “The child tax credit is part of our ongoing commitment to tax relief, financial assistance and affordability for the people of New Jersey.
All in favor?
Rutgers-Eagleton’s latest poll finds that Gov. Phil Murphy’s favorability rating has rebounded after taking a hit this past spring. Click here to read more.
“With a new state child tax credit being delivered as intended – directly and this year – New Jersey families can rest assured that the relief they need, at a time when rising costs have stretched budgets, will be there,” said Assembly Speaker Craig Coughlin, D-19th District.
Senate Majority Leader Teresa Ruiz, D-29th District, a bill sponsor who was a part of the aforementioned joint statement, said Tuesday that lawmakers kept the promise made to families to provide much needed financial relief in a timely way.
“This law will make sure that the child tax benefits are made available to families as quickly as possible,” she said.