NJ S1389

Increases New Jersey's child and dependent care tax credit by 10 percentage points across all income brackets, with the highest tier now receiving 60% of the federal credit (up from 50%) for taxpayers earning under $30,000.

Raises the income eligibility limit from $150,000 to $250,000 for married couples filing jointly, heads of household, and surviving spouses.

Establishes separate income bracket schedules based on filing status, with joint filers eligible at higher income thresholds than single filers or married individuals filing separately.

Allows married individuals filing separately to claim the credit if they meet single-filer income requirements and would have qualified for the federal credit except for the joint filing requirement.

Takes effect immediately upon enactment and applies to taxable years beginning on or after the enactment date.