Increases amount of allowable New Jersey earned income tax credit from 40 percent to 50 percent of federal benefit amount.

This bill proposes to increase the New Jersey earned income tax credit from 40 percent to 50 percent of the federal earned income tax credit amount, effective for tax years beginning in 2026. The change directly affects New Jersey residents who qualify for the federal earned income tax credit, allowing them to receive a larger refundable state tax credit based on their federal eligibility. By amending the state tax code, the legislation ensures that eligible working individuals and families will calculate their state tax benefit using the new higher percentage.