The credits had been capped at $500 a year per child or adult dependent, limited to $1,000 a year per family. But changes to the federal child-care tax credit through the American Rescue Plan could push the value of the state’s expansion beyond $76 million. Phil Murphy, who estimated the cost to the state at $17 million. The changes were first proposed in February by Gov. They will continue to be a drag on the economy if we don’t have a more robust system to fund child care.” “They are not a one-time expense for families. “Child care expenses are not going away,” Chen said. “Tax credits for families will help them afford access to this care and help the businesses stay afloat moving forward,” said Alexis Bailey, director of government affairs, New Jersey Business & Industry Associationīut both Bailey and senior policy analyst Peter Chen of New Jersey Policy Perspective said it’s too bad the expansion applies only in 2021, then expires. The bill was supported across the political spectrum. “It’s about the working families of the men and women of the state of New Jersey that we have to help, bottom line,” Mosquera said. Caps on employment-related expenses paid by the taxpayers are being removed, and the tax credit also becomes refundable, meaning a family receives a refund if the amount is larger than their tax bill. The expansion is expected to provide the benefit to an additional 80,000 families, more than double the number claiming it in prior years. “And it brought it to the forefront how childcare is very essential to the economy.” “Issues with our child care facilities have been going on for decades, and now with the pandemic it’s just exacerbated the situation,” Mosquera said. Assemblywoman Gabriela Mosquera, D-Gloucester, said changes to the benefit can help parents transitioning back to work.

Leave it to beaver cast