A New Jersey Senate committee has advanced legislation today that would provide tax credits to employers that help cover childcare costs for their workers, an effort supporters say could ease financial pressure on families and help businesses retain employees.

The bill, sponsored by Troy Singleton, was approved by the Senate Economic Growth Committee today and aims to encourage employers to invest in childcare options ranging from on-site centers to direct subsidies for employees.

Lawmakers and business groups say rising childcare costs have become a major barrier for working families in New Jersey and across the country. According to the Economic Policy Institute, New Jersey ranks as the 13th most expensive state for childcare, with infant care averaging $18,155 annually, or about $1,513 per month. Care for a four-year-old averages $17,534 per year.

“For many families, childcare has simply become unaffordable, outpacing even the annual cost of college tuition,” Singleton said in a statement, adding that high costs can push parents out of the workforce.

Under the proposal, employers could claim corporation business tax or gross income tax credits worth up to $100,000 per taxable period. The credits would cover 50% of qualified expenses, including building or renovating childcare facilities, operating on-site childcare centers, contracting with childcare providers, or subsidizing employees’ childcare expenses.

Supporters in the business community say the measure could strengthen workforce participation and productivity.

Christina Renna, president and CEO of the Chamber of Commerce Southern New Jersey, called the bill “a practical, pro-growth policy that helps retain talent.” The New Jersey Chamber of Commerce also endorsed the proposal, describing childcare access as an economic development issue that affects employers across industries.

The legislation defines childcare services as licensed care, supervision, and education for children under age 13. Employers seeking the credit would need to apply through the state Department of Labor and Workforce Development and document eligible expenses.