A tax credit increase that will benefit low- and moderate-income workers in New Jersey has been adopted by the state Assembly.

Money Stack

The measure was passed Monday by a 48-31 vote. The state Senate has not voted on the bill.

The bill increases the state's earned income tax credit from 20 percent of the federal credit to 25 percent. That could mean the average tax credit would jump from $430 to $545 per year for more than 500,000 taxpayers.

The refundable credit is meant to encourage work and reduce taxes for low- and moderate-income workers. It's expected to cost $50 million per year.

The state credit was 25 percent before it was cut two years ago.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)