Bill Text: NJ A1644 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes a gross income tax credit for full time enrollment at four year institutions of higher education, county colleges and accredited post-secondary schools in New Jersey.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2010-11-08 - Reported and Referred to Assembly Appropriations Committee [A1644 Detail]
Download: New_Jersey-2010-A1644-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Camden)
Co-Sponsored by:
Assemblywoman Lampitt, Assemblymen Prieto and Coutinho
SYNOPSIS
Establishes a gross income tax credit for full time enrollment at four year institutions of higher education, county colleges and accredited post-secondary schools in New Jersey.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act establishing a gross income tax credit for taxpayers and their dependents attending four-year institutions of higher education, county colleges or accredited post-secondary schools in New Jersey, 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. A taxpayer who has gross income of $150,000 or less during the taxable year, who has paid one-half or more of the costs of tuition of a dependent under the age of 22 years who is a resident of this State and a full time student in good standing at a New Jersey four-year institution of higher education, a New Jersey county college, or an accredited post-secondary business, technical, trade or vocational school in this State shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 10% of the cost of tuition, paid by the taxpayer during the taxable year, up to a maximum credit of $1,000. No credit shall be allowed under this subsection for a taxable year if the taxpayer has claimed a deduction for the dependent pursuant to section 1 of P.L.1976, c.84 (C.54A:3-1.1) for that taxable year.
b. A resident taxpayer who has gross income of $150,000 or less during the taxable year, who has paid costs of tuition for the taxpayer's full-time attendance in good standing at a New Jersey four-year institution of higher education, a New Jersey county college, or an accredited post-secondary business, technical, trade or vocational school in this State shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 10% of the cost of tuition, paid by the taxpayer during the taxable year, up to a maximum credit of $1,000. No credit shall be allowed under this subsection for a taxable year if the taxpayer in attendance at a New Jersey four-year institution of higher education, a New Jersey county college, or an accredited post-secondary business, technical, trade or vocational school in this State is a dependent of another taxpayer who claims a credit for the taxpayer under subsection a. of this section for that taxable year.
2. This act shall take effect immediately and shall apply to taxable years beginning after enactment.
STATEMENT
This bill encourages greater opportunities for New Jersey residents to attend New Jersey institutions of higher education, county colleges and accredited post-secondary training schools by establishing a gross income tax credit for full time attendance at these educational institutions in this State. The tax credit is equal to 10% of tuition costs of up to $10,000 paid by a taxpayer either for a resident dependent under 22 years of age or for the taxpayer's own full time attendance in New Jersey. Taxpayers with gross incomes of up to $150,000 are eligible for the tax credit.
Tuition and fees for New Jersey State college students are more than 50 percent higher than the national average. The national average for in-state tuition at four year public colleges was $2,966 for academic year 1996-1997. In New Jersey, the American Association of State Colleges and Universities reported that in-State tuition for the same year was $4,588, and recent tuition increases announced for New Jersey's non-research institutions for the 1997-1998 year are averaging close to 10 percent. The county community college system, comprised of 19 institutions, provides access to higher education for a broad range of New Jersey residents who might otherwise be denied the benefits of a college education. Post-secondary business, technical, trade or vocational schools can provide an avenue for the non-college bound to pursue enhanced skills and improve their opportunities for occupational and economic success. Tax credits under this bill can provide substantial financial subsidies for taxpayers who are pursuing a college education or post-secondary training in New Jersey for themselves or their dependents.
