NJ A2243

Licensed child care staff who directly supervise children and registered family day care providers who have worked continuously for at least six months during the taxable year are eligible for a state gross income tax credit

Credit amounts for those earning under $25,000: $1,000 for caring for children 30+ months old, $1,500 for caring for infants/toddlers under 30 months; amounts decrease at higher income tiers up to $45,000 maximum eligibility

Higher credits for infant/toddler care require the provider to spend at least 50% of their employment time caring for children under 30 months of age

The credit is fully refundable for those earning less than $45,000 (paid as cash if no tax liability exists), while those earning exactly $45,000 may carry forward unused credits for one year only

Credit amounts do not count as income when determining eligibility for state benefits or assistance programs, including those funded with federal dollars