This bill (S 2198) expands New Jersey's Earned Income Tax Credit (EITC) program to allow taxpayers with Individual Taxpayer Identification Numbers (ITINs) to qualify, provided they otherwise meet federal EITC eligibility requirements. It removes the current requirement for a Social Security number by amending the state law to state that taxpayers may claim the credit regardless of whether they have an SSN or ITIN. This change directly affects low-income New Jersey residents who use ITINs - commonly undocumented workers or those without SSNs - to access state tax relief they previously could not receive. The policy change aligns New Jersey's program with federal eligibility rules while maintaining the credit's structure and funding.
This New Jersey bill (S 1763) creates a refundable tax credit for homeowners who make extra principal payments on qualifying mortgages. Taxpayers can claim 50% of these extra payments, up to $1,000 annually, reducing their state income tax bill (or creating a refund if the credit exceeds tax owed). To qualify, the mortgage must be for a primary residence, be a traditional 15-30 year loan, and the homeowner must meet income limits (e.g., single filers with $125,000-$135,000 taxable income see reduced credits). The credit applies only to payments beyond the required monthly amount and cannot be claimed for more than 10 years total.
S 1622 creates a tax credit program for New Jersey employers who hire military spouses who are nonresidents of the state but live in New Jersey due to their spouse's military service (such as being transferred here, legally domiciled here, or moving on a permanent change-of-station). Employers receive a credit equal to 15% of wages for military spouses working 120-400 hours per year or 25% for 400+ hours, capped at $2,400 per employee annually. The credit reduces corporation business tax or gross income tax and requires employers to apply through the Commissioner of Labor and Workforce Development. The bill directly supports military spouses facing employment disruptions from frequent military relocations.
S 1199 would create a New Jersey tax credit of up to $2,500 annually for residents who provide care to a qualifying relative (65+ or meeting disability criteria) or to an individual with a documented disability. The credit covers documented expenses like home modifications, medical equipment, in-home care services, and transportation for medical needs. Caregivers must submit receipts, proof of payment, and verification of care to claim the credit, which can be used alongside a dependent tax deduction. Any unused credit reducing tax liability to zero would be refunded as an overpayment.
S 2515 creates a tax credit for New Jersey businesses that hire employees with developmental disabilities. Employers can claim a credit equal to 10% of wages paid to qualifying employees, capped at $3,000 per employee and $60,000 total per business annually. To qualify, employees must be certified by New Jersey’s Division of Developmental Disabilities as eligible for its services. Businesses cannot claim this credit for the same employee if they also claim a separate credit for employment at a sheltered workshop or occupational training center.
This bill clarifies that certain residential redevelopment projects under New Jersey's Aspire Program will not have their tax credit incentives prorated (reduced proportionally) during any year of the project's eligibility period. It specifically applies to projects approved under the November 2021 rules or submitted within 121 days after July 6, 2023, which previously faced proration requirements. The key change removes the proration requirement for these qualifying projects, ensuring developers receive the full tax credit amount annually. This directly affects developers of residential projects providing housing for low- and moderate-income households. The bill retroactively applies to projects already approved under the affected rules.
New Jersey's S 1389 expands the state's child and dependent care tax credit by raising income limits and increasing credit percentages. It raises the income cap for joint filers, heads of household, and surviving spouses from $150,000 to $250,000, while keeping the $150,000 limit for other filing statuses. The bill also increases the credit percentage across all income brackets by 10 points - for example, taxpayers earning under $30,000 will now receive 60% of the federal credit instead of 50%. The changes apply to taxable years beginning after the bill's enactment and extend eligibility to married individuals filing separately who meet federal credit requirements except for joint filing.
This bill creates a tax credit for New Jersey manufacturers hiring apprentices in machine and metal trades. Employers can claim a credit equal to 50% of qualifying apprentices' wages, up to $7,500 per apprentice per year, for structured training programs. To qualify, apprentices must work at least 1,500 hours annually in roles like machinists or toolmakers, with defined training, wage progression, and completion leading to skilled worker status. The credit applies to both corporate business tax and individual income tax starting January 1, 2016, and is nonrefundable.
This bill increases New Jersey's Earned Income Tax Credit (EITC) benefit to 60% of the federal credit amount for qualifying residents, effective for taxable years beginning January 1, 2022. It directly affects low- and moderate-income New Jersey workers and families who qualify for the federal EITC but were previously receiving only 40% of that federal benefit through the state program. The change modifies existing law to raise the state credit percentage without altering eligibility rules, meaning residents must still claim the federal EITC first to access the enhanced state credit. The credit remains refundable, providing cash payments even if the recipient owes no state income tax. This policy change expands tax relief for working individuals and families already eligible under federal guidelines.
This bill expands New Jersey's Earned Income Tax Credit (EITC) program to include victims of domestic abuse who file as "married filing separately." It removes the requirement for these taxpayers to file jointly with an abusive spouse to qualify for the credit, which they previously lost by filing separately. To claim the credit, victims must meet three conditions: living apart from their spouse when filing, being unable to file jointly due to domestic abuse, and indicating this on their tax return. The change aligns New Jersey's EITC rules with federal requirements for domestic abuse victims, ensuring they can access the credit without forcing them to remain in unsafe situations.
