(The Center Square) – A state-level child tax credit would make New Jersey a more affordable place to raise a family, according to a new report from the New Jersey Policy Perspective (NJPP).
In its report, “Making New Jersey Affordable for Families: The Case for a State-Level Child Tax Credit,” NJPP examined two possible models for a state-level child tax credit. Both are inspired by a similar credit at the federal level and target families that earn less than 250% of the federal poverty level, which equals about $69,000 for a family of four.
One targets children under 6 years old, and one includes all children under 18 and adult dependents up to 24 years old. Using either proposal, a state-level child tax credit would provide immediate help to low- and middle-income families with children, NJPP contends.
The report’s proposed “Young Child Tax Credit” would give a tax credit of up to $582 – and $553 on average per household – for each eligible child and reach approximately 186,000 households and 449,000 children. The report’s proposed “All Ages Child Tax Credit” would give a tax credit of up to $187 – and $246 on average per household – for each eligible child and reach approximately 424,000 households and 792,000 children.
According to NJPP, each child tax credit would cost roughly $100 million.
“Making New Jersey affordable for families raising children means giving them the resources they need to address everyday challenges,” said Peter Chen, report author and senior policy analyst at NJPP, said in an announcement.
“A Child Tax Credit would help families meet the high costs of food, rent, child care, and everything else kids need to be happy and healthy,” Chen added. “The federal Child Tax Credit has shown that this is a policy that works, and one that can and should be replicated at the state level.”