Bill Text: NJ A1104 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides gross income tax credit for interest paid on certain student loans.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Higher Education Committee [A1104 Detail]
Download: New_Jersey-2012-A1104-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblyman TROY SINGLETON
District 7 (Burlington)
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblyman Benson
SYNOPSIS
Provides gross income tax credit for interest paid on certain student loans.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing a gross income tax credit for interest paid on certain student loans, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A taxpayer shall be allowed a credit against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of any interest paid by the taxpayer during the taxable year on a loan which is (1) secured through a State student loan program, a federal student loan program, or a commercial lender and which is (2) obtained and expended exclusively for purposes of paying the tuition and fees and other expenses, such as room and board and books and supplies, related directly to the enrollment of the taxpayer, the taxpayer's spouse or partner, or the taxpayer's dependent at a college or university or an accredited post-secondary business, technical, trade, or vocational school.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill provides a credit against the New Jersey gross income tax for interest paid on certain student loans.
Under the bill, the allowable tax credit is equal to 100 percent of any interest paid by the taxpayer during the taxable year on a loan which is (1) secured through a State student loan program, a federal student loan program, or a commercial lender and which is (2) obtained and expended exclusively for purposes of paying the tuition and fees and other expenses, such as room and board and books and supplies, related directly to the enrollment of the taxpayer, the taxpayer's spouse or partner, or the taxpayer's dependent at a college or university or an accredited post-secondary business, technical, trade, or vocational school.
The purpose of this bill is to defray a potion of the overall costs associated with making payments on student loans that are obtained exclusively to finance the pursuit of higher education.
