Washington, DC - Rep. Donald Norcross (NJ-01) today voted for tax breaks for families, students, workers, and businesses that will provide predictability and affordability for hard working Americans and help grow our economy.

Among the tax credits in today’s bipartisan legislative package are the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and American Opportunity Tax Credit (AOTC) that directly benefit working families and students.

“This is the tax break working families need. New Jersey families rely on the Earned Income Tax Credit and Child Tax Credit to help make ends meet. Meanwhile the American Opportunity Tax Credit helps make college affordable for middle class students and parents,” said Rep. Norcross. “Today Congress acted on behalf of America’s families, helping them provide for today and plan for the future.”

According to the Center on Budget and Policy Priorities, 599,000 New Jersey households received the EITC and 448,000 received the low-income CTC in 2012, the most-recent year covered by their report. More than 222,000 New Jerseyeans, including 114,000 children, were lifted out of poverty by the EITC and CTC programs that same year. The EITC alone injected $1.3 billion into the state’s economy. The AOTC allowed more than 300,000 students and families in New Jersey to receive an estimated $700 million each year to help with education expenses.  

The bill also prioritizes education by extending a tax credit for out-of-pocket costs incurred by teachers for school expenses. Furthermore, small business spending, research and development spending, and charitable giving are all incentivized by today’s vote. Finally, the bill suspends the medical device tax that threatened to slow manufacturing and innovation in that industry.

“I’m working across party lines to grow America by investing in education, business innovation, and tax deductions for charitable giving. These are key investments in our families and our future that I’m proud to support,” said Rep. Norcross.

The Earned Income Tax Credit provides tax benefits to qualified low and middle-income workers and their families. The amount of the credit varies depending on annual income, marital status and number of children. The Child Tax Credit allows qualified individuals to reduce their tax liability by $1,000 per qualifying child under 17. The American Opportunity Tax Credit allows up to $2,500 per year for tuition and related expenses.