Earlier today, the New Jersey Senate and Assembly passed S4065/A6071, expanding the state Child and Dependent Care Tax Credit by making it fully refundable so that low-income residents can receive a cash refund even if the credit amount is higher than their annual income. In response to the Legislature passing the bill, New Jersey Policy Perspective (NJPP) releases the following statement.
Peter Chen, Senior Policy Analyst, NJPP:
“This legislation will help working families meet the high price of child care in New Jersey and balance work-family obligations that often seem insurmountable. Expanding the child and dependent care tax credit will put money back in the pockets of parents and caretakers who face staggering annual childcare costs, which are often as high as in-state college tuition.
“Although this is only a one-year change and a small part of addressing New Jersey’s child care crisis, the expanded credit is a critical lifeline for families struggling to care for the state’s youngest children — and a step toward making this a more just and equitable state that treats working people with dignity.”