Increases amount of allowable New Jersey earned income tax credit from 40 percent to 50 percent of federal benefit amount.

Summary

The bill changes New Jersey law so that eligible residents can claim a state earned‑income tax credit equal to half of the federal credit, up from the current 40%. It applies to individuals and married couples who qualify for the federal credit and will take effect for tax years beginning on or after Jan. 1, 2026. The change is intended to boost support for low‑income working families.

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