A5724

Provides a gross income tax credit for employment-related dependent care expenses for certain resident taxpayers.

Provides a gross income tax credit for a portion of employment-related dependent care expenses incurred by resident taxpayers with New Jersey taxable income of $300,000 or less. The credit is available for expenses related to dependents under age 13. The credit amount varies based on the taxpayer's income, with a maximum credit of $5,000 per dependent per year. The bill prohibits taxpayers from claiming both the State Child and Dependent Care Tax Credit and the credit established by this bill. The credit can be carried forward to future years if unused.