Expands eligibility for State gross income tax credit for child and dependent care expenses and increases amount of credit.

This bill (S 1482) expands New Jersey’s tax credit for child and dependent care expenses by raising income limits and increasing credit amounts. It raises the income cap from $150,000 to $250,000 for married couples filing jointly, heads of household, or surviving spouses, while keeping the $150,000 limit for other filers. The credit percentage for all income brackets increases by 10 points (e.g., from 50% to 60% for under $30,000 income). It also adds eligibility for married individuals filing separately who meet federal credit requirements except for the joint filing rule. The changes apply to taxable years beginning after enactment.