NJ S4014

Creates a New Jersey gross income tax credit for licensed child care center staff who directly supervise children and registered family day care providers who have worked continuously for at least six months during the taxable year.

Credit amounts vary by income level: $1,000-$1,500 for incomes under $25,000; $750-$1,000 for incomes between $25,000-$35,000; and $500-$750 for incomes between $35,001-$45,000.

Higher credit amounts apply to providers caring for infants and toddlers (birth to 30 months old), but only if the provider spends at least 50% of their employment time with that age group.

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

Credit amounts will not count as income when determining eligibility for state benefit programs, including those partially funded by federal sources.