The New Jersey state Assembly Budget Committee advanced a bill this afternoon which would set up a child tax credit program similar to the federal program which expired last December.

According to the bill, families making $30,000 or less per year, will receive $500 per child under the age of 6. The $500 amount will be reduced by $10 for every $1,000 of income that the taxpayer’s taxable income exceeds $30,000 until the annual income amount reaches $80,000, at which point a family will no longer be eligible.

The credit can be claimed when a taxpayer files their New Jersey annual tax return. The credit is refundable, meaning that any excess credit beyond the taxpayer’s tax liability will be paid to the taxpayer in the form of a tax refund.

According to an analysis from the New Jersey Policy Perspective,  a nonpartisan think tank which advocated for the bill, the credit will benefit around 250,000 households and more than 400,000 children statewide.

The bill was sponsored by Assemblywoman Verlina Reynolds-Jackson (D-Mercer) and Senate Majority Speaker Teresa Ruiz (D-Essex).

It now moves to the full Legislature for a final vote before Governor Murphy can sign it into law.