NJ S1837

Employers subject to Corporation Business Tax (CBT) or Gross Income Tax (GIT) may claim a tax credit equal to 50% of qualifying child care expenses for employees' children, up to $100,000 per taxpayer per year.

Eligible expenses include acquiring, constructing, or renovating property for child care facilities; operating on-site child care centers; contracting with external child care providers; and subsidizing employees' child care costs at licensed facilities.

The total combined tax credits under both CBT and GIT provisions are capped at $10 million statewide per tax year.

Unused credits may be carried forward for up to seven years, and taxpayers may sell tax credit transfer certificates to other entities for at least 75% of the credit value.

The Commissioner of Labor and Workforce Development must conduct annual evaluations of the program's impact on child care availability and submit reports with participation data and improvement recommendations.