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Read. Follow. Verify.New Jersey bill creates gross income tax credit for dependent care expenses up to $5,000
Last action · October 29, 2026: Introduced, Referred to Assembly Children, Families and Food Security CommitteeSponsor: Gerry Scharfenberger
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What This Bill Would Do
Assembly Bill 5724 establishes a new in New Jersey for resident taxpayers with taxable incomes up to $300,000 who incur employment-related dependent care expenses for dependents under age 13. The credit ranges from 5% to 20% of expenses depending on income tiers, capped at $5,000 per dependent per year, and prohibits taxpayers from claiming both this new credit and the existing State Child and Dependent Care Tax Credit simultaneously.
Resident taxpayers earning between $150,001 and $300,000 become newly eligible for a state tax credit on child care expenses that was previously restricted to lower-income households, while families earning under $150,000 must choose between claiming this new expense-based credit or the existing percentage-of-federal credit.
- New Jersey previously provided a State Child and Dependent Care Tax Credit restricted to resident taxpayers with taxable incomes under $150,000. context
- The General Assembly is the lower house of the New Jersey Legislature. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Resident taxpayers with New Jersey taxable income up to $300,000
Eligible resident taxpayers may claim a tax credit for a percentage of employment-related dependent care expenses for children under 13.
Taxpayers claiming the existing State Child and Dependent Care Tax Credit
Taxpayers who qualify for both credits must choose between claiming the existing credit or the new expense-based credit, as simultaneous claims are prohibited.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who is eligible to claim the new dependent care tax credit?
What expenses are excluded from the definition of employment-related expenses?
Can a taxpayer claim both the existing State Child and Dependent Care Tax Credit and this new credit?
What is the maximum credit amount allowed per dependent?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Oct 29, 2026HouseIntroducedIntroduced, Referred to Assembly Children, Families and Food Security Committee
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Expansion of Dependent Care Tax Relief Thresholds
The legislation expands state tax relief for dependent care from the previous $150,000 income limit up to $300,000 while introducing a new calculation method based on a percentage of expenses rather than a percentage of the federal credit.
Connected Entities
Sources
njleg.state.nj.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy25Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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