A2720

New Jersey A2720 allows a tax credit for child care expenses based on the Grow NJ Kids rating of the child care center.

New Jersey A2720 provides a gross income tax credit for a portion of child care expenses for children enrolled at a licensed child care center. The credit amount varies based on the Grow NJ Kids rating of the child care center. For a center with a three-star rating, the credit is 15 percent of expenses; for a four-star rating, it is 17.5 percent; and for a five-star rating, it is 20 percent. For taxpayers with less than $25,000 of gross income, any remaining credit after reducing tax liability to zero is refundable.