Over 760,000 New Jersey families will receive a tax rebate of up to $500 this summer under a budget deal announced today by Governor Phil Murphy.
The rebate will apply to married couples with an income below $150,000 and at least one dependent child, and single parents with less than $75,000 in income and at least one dependent child. They will begin going out on July 1.
The tax rebate is just part of the Fiscal Year 2022 budget which Murphy hammered out with Senate President Stephen Sweeney, Assembly Speaker Craig Coughlin, Senate Budget Chair Paul Sarlo, and Assembly Budget Chair Pintor Marin.
The budget contains other tax benefits targeted to New Jerseyans of moderate means. An update to the Homestead program will result in an increase in the average benefit for seniors and disabled homeowners of over $130 and an average increase in the benefit for lower-income homeowners of $145.
The agreement increases the Child and Dependent Care Credit so that it is both available for families making up to $150,000 and refundable. According to the governor, this change will affect over 80,000 more families and increase the average credit for those making under $30,000 to $277.
A property tax deduction for veterans will reportedly increase the average credit for those making under $30,000 to $277.
The Earned Income Tax Credit age of eligibility will be lowered to 18 and expanded to those over 65 with or without dependents. The measure is projected to affect 90,000 residents – roughly 70,000 over 65; and 20,000 between the ages of 18 and 21.
“Tax relief is a critical component of a stronger and fairer New Jersey,” said Murphy. “With each budget I have introduced, we have provided greater relief to those who need it most – through our continued expansion of the Earned Income Tax Credit, the establishment and expansion of a Child and Dependent Tax Care Credit, increased tax relief for veterans, middle-class tax rebates, and now the long-overdue expansion of the Homestead Benefit to make sure relief reflects reality. I’m proud to join with my partners in the Legislature to make sure that the best state to live in Americais more affordable for families.”
The tax breaks announced today will cost the state $444 million. Only a short time ago, New Jersey was forecasting a $4.3 billion budget shortfall. However, a combination of increased tax collections and money from the American Rescue Plan has resulted in a $10.1 million projected surplus for the fiscal year ending June 30.