485,000 residents would be eligible for a refund under the expanded credit, up from 200,000 that are currently eligible
Senator Paul Sarlo, head of the N.J. Senate Budget Committee, during the New Jersey Joint Budget Oversight Committee in this 2010 file photo. The Senate Budget Committee passed legislation today that restores tax credits for some of those considered working poor in the state.TRENTON — The senate Budget Committee passed a bill restoring earned-income tax credits for nearly 300,000 residents who are considered working poor.
In a 7-to-5 vote along partisan lines, the bill would restore the cut imposed by Gov. Chris Christie this fiscal year that set the tax credit to 20 percent of the federal level.
The bill, which now goes to the full Senate later this week, would raise that level to 25 percent.
“The bill speaks for itself,” said state Sen. Paul Sarlo (D-Bergen), head of the committee, before quoting former President Ronald Reagan touting the credit as a job creator.
“I guess I don’t agree with President Reagan on everything,” said Sen. Michael Doherty (R-Hunterdon).
He said that some residents who pay no income taxes will get a refund, and that is something he can’t support.
Overall, 485,000 residents would be eligible for a refund under the expanded credit, up from 200,000 that are currently eligible.
The cost of expanding the credit is $45 million, according to budget documents.
The budget committee is expected to take up the remaining budget bills later today. Members broke for a recess at 11:40 a.m. to discuss the budget and are expected to return before 1 p.m.
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