New Jersey wants to pay companies to build employee daycares

Provides temporary corporation business tax and gross income tax credits for certain employer-provided child care expenditures.

Introduced· 2026-01-13

Who's it for

Who's it for: Workers

What it means for you

7/10Helps you

Good for everyday people ·

Heavily funded

Plain‑English summary, cross‑checked against the official bill text.

This bill would give businesses a tax break if they build or fix up a daycare center for their employees' kids.

Our take

What we think, in plain words.

Child care is wildly expensive and hard to find. This bill tries to fix that by offering companies up to $25,000 in tax credits to build daycares at work. To make sure it is not just a free handout, the state requires the company to keep the daycare open for at least five years, or they have to pay the money back. It is a win for working parents, even if it means less tax money for the state.

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The facts

What the bill actually says, no spin.

Gives businesses a tax credit for half of their costs to build or fix up a daycare center.
Caps the eligible expenses at $50,000, meaning the biggest tax break a company can get is $25,000.
Requires the daycare to be mostly for the children of the company's workers.
Forces companies to repay the tax credit with interest if they close the daycare before five years.