5 New NJ Laws That Could Impact Your Life: Child Tax Credit, Mental Health And More

TRENTON, NJ — Gov. Phil Murphy's administration held three media events in the past week to sign the $50.6 billion state budget, gun measures and abortion bills into law. However, Murphy recently signed plenty of legislation into law that received less attention but will nonetheless impact many New Jerseyans.

New measures include the creation of a New Jersey child tax credit, the expansion of allowable work hours for teens, and plans for a three-digit hotline to address behavioral-health crises.

Here are five of the bills signed into law:

School Sales-Tax Holiday Becomes Annual

Murphy and Democratic leaders previously touted an agreement that would create a sales-tax holiday on school supplies for Aug. 27 to Sept. 5. But the upcoming tax holiday likely won't be the last, as a new state law will establish an annual 10-day exemption period for sales and use tax. See the law here.

The 10-day exemption on New Jersey's sales tax will save buyers an estimated $20-60 million per year, according to the Office of Legislative Services — down from the Murphy administration's fiscal estimate of $75 million.

Eligible products for non-business use will become eligible for the tax holiday:

• computers with a sales price of less than $3,000
• school computer supplies with a sales price of less than $1,000 per item
• school supplies
• school art supplies
• school instructional materials
• sport or recreational equipment

The savings might not be much — Assembly Republican Leader John DiMaio estimated it would save New Jerseyans approximately $28.75 each, calling it "another underwhelming gimmick." But the law passed unanimously in the State Senate and Assembly.

State Child Tax Credit

The measure is similar to the expanded federal child tax credit, which was established as part of the American Rescue Plan but has not been renewed. New Jersey's child tax credit will allow a resident with taxable income of $80,000 or less to benefit.

The benefits are determined with a sliding scale. Those making $30,000 or less can receive $500 per child younger than 6. But residents making between $30,001 and $80,000, the credit reduces by $10 for every $1,000 of income exceeding $30,000.

The income limit applies to taxpayers of any filing status, but married couples must file a joint return unless they file as a head of household or surviving spouse for federal income-tax purposes.

New Jerseyans of the following income levels would receive the following credits per young child:

• less than $30,000: $500 credit
• $30,001 to $40,000: $400
• $40,001 to $50,000: $300
• $50,001 to $60,000: $200
• $60,001 to $80,000: $100

The Office of Legislative Services estimates that families will claim the tax credit for 374,000 dependent children, with a combined benefit of $134.7 million to $156.3 million per year — an average of $360 to $418 per child.

Thriving By Three Act

The law establishes the Thriving By Three competitive grant program for licensed child care providers, registered family daycare programs and Head Start programs to open new centers that serve infants and toddlers.

The $28 million for the program comes from the American Rescue Plan. Grants will support facilities that agree to hire staff with specific degrees and qualifications for child care development.

Gov. Phil Murphy conditionally vetoed the original bill on his desk, saying the grants should support existing child care providers, which have expertise in infant and toddler development. The original bill included schools, but the State Legislature agreed to the change.

Behavioral-Health Crisis Hotline

New Jersey will establish a hotline center that will allow people to call 988 in case of behavioral-health crises. The "9-8-8 Crisis Hotline Center" is designed to help prevent suicide while addressing crises involving mental health and substance-use disorders.

Additionally, the law is designed to take police out of the equation as much as possible, stating that "in many cases, the responding law enforcement officers do not possess the specialized training needed to respond to an acute behavioral health crisis, and so are not equipped to adequately assess the situation, de-escalate and resolve the immediate crisis, and access appropriate behavioral health care services."

The bipartisan law gives the state Department of Human Services commissioner six months to procure a contract with a crisis hotline center.

Expanding Teen Work Hours

Last year, New Jersey passed a temporary law that allowed minors ages 16 to 17 to work up to 50 hours per week, rather than 40, with a parent's or guardian's permission. The legislation came amid staffing struggles last summer, which continue to cause issues.

The new law makes the expansion of hours permanent for the age group. The legislation also expands working hours for 14- and 15-year-olds to mirror federal laws, which permits up to 40 hours of work in the summer months, as well as increase the amount of time a minor can work before a required break from five to six hours. Read more: Teens Can Work Longer Summer Hours Under New Law