Committee advances employer child-care tax credit despite organized opposition

The Senate Economic Growth Committee amended and released Senate Bill 1837, which would establish a child-care contribution tax credit for employers to offset certain childcare expenses for employees.

Chris Charmailes, Chief Government Affairs Officer for NJBIA, testified the bill is "pro childcare," "pro business" and could make employer-supported child care more affordable. He told the panel the measure supports workforce needs by incentivizing employer participation.

Labor and advocacy groups urged the committee to oppose the bill. Anna Martawishki of Communications Workers of America told the committee that "corporate childcare tax credits are a weak and inequitable tool that fail to lower child care costs for most New Jersey families," citing worker demographics, low wages and high turnover that the bill does not address. Maura Collins Groom of New Jersey Citizen Action added the bill could represent a $10,000,000 corporate subsidy and argued those funds would be better invested in the childcare assistance program and workforce supports.

Despite the objections, a motion to amend and release S1837 was moved by Senator Turner and seconded by Senator Corrado. Roll call recorded affirmative votes and the bill was released; committee members noted the bill will have a second reference to the Budget and Appropriations Committee for further work.