As Americans struggle with a rise in living expenses, a new child tax credit scheme that lawmakers passed will provide $500 payments to lower-income families in one state.
A record $50.6 billion budget was approved by the Democratic-controlled New Jersey state legislature and forwarded to Democratic Governor Phil Murphy on Wednesday. The plan is a part of that budget.
According to his office, he planned to sign it by the deadline on Thursday, the Associated Press said.
The proposed law would establish the New Jersey Child Tax Credit Program, which would grant families earning up to $30,000 annually a refundable $500 tax credit for each child under the age of six.
For households earning up to $80,000 annually, the tax credit amount would be lowered by $10 for every $1,000 of taxable income beyond $30,000 until it reaches $80,000, with a minimum of $300 per kid.
According to estimates by the Office of Legislative Services, the program might cost up to $156.3 million annually.
According to the analysis, around 374,000 children under six will be eligible for the tax benefit in 2022. The whole $500 would be available to at least 180,700 kids.
According to the analysis, around 374,000 children under six will be eligible for the tax benefit in 2022. The total $500 would be available to at least 180,700 kids, and another 99,500 may receive a credit of at least $300.
Another item in the budget is a property tax credit for homeowners: 870,000 households would receive “direct assistance” of $1,500 for incomes up to $150,000 and $1,000 for incomes between $150,000 and $250,000, as reported by Newsweek.