New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A3425

Introduced

2/1/24

Refer

2/1/24

Caption

Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

Impact

The proposed increase is expected to significantly affect state laws governing tax assistance programs. By aligning state EITC benefits more closely with federal benefits, the bill aims to ensure that New Jersey residents receive adequate tax relief, thus promoting greater economic equity. Since the EITC is often regarded as one of the most effective tools for reducing poverty and incentivizing work, this change could lead to improved financial outcomes for eligible families, thereby stimulating local economies through increased spending.

Summary

Assembly Bill A3425 proposes an increase in the benefit amount under the New Jersey Earned Income Tax Credit (EITC) program from 40 percent to 60 percent of the federal benefit amount. This adjustment aims to provide greater financial support to low- to moderate-income working individuals and families in New Jersey. The goal is to enhance the economic stability of residents who may be struggling financially, providing them with a more substantial tax credit that reflects their needs and supports their livelihoods.

Contention

While proponents of the bill advocate for increased support for low-income households, there may be concerns regarding the fiscal implications of expanding tax credits. Some lawmakers could question the potential increase in state expenditures required to fund the elevated tax credit amount. Additionally, discussions may arise over the efficacy of such expansions in delivering the intended economic benefits, as well as ensuring that the EITC program remains sustainable amidst broader budgetary pressures faced by the state.

Latest NJ A3425 Activity

View All Events: NJ 2024-2025 Regular Session A3425

Companion Bills

NJ S1557

Same As Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

NJ S2618

Carry Over Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

NJ A4150

Carry Over Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

Previously Filed As

NJ A4890

Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

NJ S243

Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

NJ S4211

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

NJ A4891

Increases benefit amounts and expands eligibility under New Jersey earned income tax credit program.

NJ S3797

Increases benefit amounts and expands eligibility under New Jersey earned income tax credit program.

NJ S0040

Increases the state earned-income credit as of January 1, 2026 to seventeen percent (17%) of the federal earned-income credit, not to exceed the amount of state income tax.

NJ A5196

Imposes gross income tax at rate of 100 percent on amounts received by resident taxpayers from Anti-Weaponization Fund.

NJ S0244

Increases the Rhode Island earned-income credit to twenty percent (20%) on January 1, 2026. Such credit would not exceed the amount of state income tax.

NJ A3652

Establishes New Jersey Child Tax Credit program to benefit certain low-income households.

NJ S4405

Imposes gross income tax at rate of 100 percent on amounts received by resident taxpayers from Anti-Weaponization Fund.

Similar Bills

No similar bills found.