New Jersey Policy Perspective: Making New Jersey Affordable for Families – The Case for a State-Level Child Tax Credit
ITEP Work in ActionA state-level child tax credit would recognize the unique costs of raising children and the support that most families need to care for their kids and set them up for success. When families can pay for basic expenses and save for their children’s futures, it improves child well-being immediately by reducing key costs like food and rent, makes it more likely for children to reach their full potential, and reduces societal costs created by child poverty later in life.
The two scenarios presented in this report are inspired by the federal expanded Child Tax Credit, focusing on children in low-income and middle-income families — one targeting all families earning less than 250 percent of the federal poverty level (about $69,000 for a family of four, or $58,000 for a family of three), and one only available to young children up to five years old in the same income range. Both proposals cost roughly $100 million.