The earned income tax credit is a rare antipoverty program that has enjoyed a long history of bipartisan support among state and federal policymakers.
After Gov. Chris Christie reduced New Jersey’s EITC match in 2010 to help plug a $2.2 billion shortfall, lawmakers this year upped the state match from 30 percent to 35 percent. With the expansion, eligible taxpayers in New Jersey will receive, on average, an $836 credit from the state. Currently, a married couple with two children making about $49,000 a year can receive up to $7,200 in earned income tax credits (state and federal combined).
The increase in New Jersey’s percentage match is expected to cost the state roughly $62 million a year in lost tax revenue