Tax Benefits for New Jerseyans
Tax Cuts - Subtotal $7,287,614,977 UI - $2400 Income tax exemption *TBD*AMT $3,526,841,449Recovery Zone Bonds $119,780,697Child Tax Credit $299,989,450EITC Increases $84,350,260Making Work Pay $3,256,653,122

Subtotal $7,287,614,977

  • Making Work Pay (click for more information)
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    $3,256,653,122

    How do the funds flow?
    Individual eligibility

    Description
    For 2009 and 2010, the new law provides a refundable tax credit of up to $400 for working individuals and $800 for working families.

    Notes
    The tax credit estimate listed is based on a Center for American Progress estimate.
  • Earned Income Tax Credit (EITC) Increases (click for more information)
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    $84,350,260

    How do the funds flow?
    Individual eligibility

    Description
    Increases the EITC to forty-five percent (45%) of the family’s first $12,570 of earned income for families with three or more children and would increase the beginning point of the phase-out range for all married couples filing a joint return (regardless of the number of children) by $1,880.

    Notes
    The tax credit amount listed represents a Center for American Progress estimate.
  • Child Tax Credit (click for more information)
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    $299,989,450

    How do the funds flow?
    Individual eligibility

    Description
    Increases the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15% of the taxpayer’s earned income in excess of $8,500. The bill would reduce this floor for 2009 and 2010 to $3000.

    Notes
    The tax credit estimate listed is a Center for American Progress estimate.
  • Recovery Zone Bonds (click for more information)
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    $119,780,697

    How do the funds flow?
    Formula allocation for the state

    Description
    The Act authorizes a new category of tax-exempt private activity bonds for use in designated areas with significant unemployment, poverty and home foreclosure rates: $10 billion in taxable recovery zone economic development bonds, where the state or local government would receive a 45% reimbursement of interest paid, with no option to apply the credit to investors; and, $15 billion in recovery zone facility private activity bonds allocated based on a proportion of a jurisdiction’s unemployment rate versus the national rate.  States will receive a minimum allocation of one percent.  

    Notes
    The funding allotment cited is a Center for American Progress estimate.
  • AMT (click for more information)
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    $3,526,841,449 - see notes

    How do the funds flow?
    Individual eligibility

    Description
    Extension of AMT relief for 2009. The bill would provide more than 26 million families with tax relief in 2009 by extending AMT relief for nonrefundable personal credits and increasing the AMT exemption amount by $70,950 for joint filers and $46,700 for individuals. This proposal is estimated to cost $69.759 billion over 10 years. 

    Notes
    No FFIS estimate.  CRS estimates that about 1.7 m individuals in NJ are helped by this.  Represents Center for American Progress estimate.
  • UI - $2400 Income tax exemption
    UI - $2400 Income tax exemption
    Estimated benefit to NJ (over three years): Actual award notice issued by federal agencies or estimate
    *TBD* - see notes

    How do the funds flow?
    Individual eligibility

    Description
    Suspension of federal income tax liability for up to $2,400 of unemployment compensation received during 2009 

    Current Status
    This tax exemption will be available to UI claimants on their CY09 tax return.

    Notes
    NJ DOLWD working on estimate.