SENATE, No. 554

STATE OF NEW JERSEY

221st LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

 

 

Sponsored by:

Senator  JON M. BRAMNICK

District 21 (Middlesex, Morris, Somerset and Union)

 

 

 

 

SYNOPSIS

     Allows credit against gross income tax for certain eligible taxpayers pursuing education and employment in State.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  

An Act allowing a credit against gross income tax for certain eligible taxpayers who pursue their education and employment in the State and 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 resident taxpayer who has graduated from a New Jersey high school and from a New Jersey institute of higher education with a grade point average of 3.5 or higher and is an eligible employee for a New Jersey employer within two years following graduation from a New Jersey institution of higher education, shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount of $1,500 for the taxable year.

     b.    A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than zero.

     c.     A credit allowed pursuant to this section may be claimed only for the first five consecutive tax years following eligible employment and only if the requirements of subsection a. are met the year that the credit is claimed.

     d.    As used in this section:

     "Eligible employee" means a full-time employee who works a normal work week of 25 or more hours.

     "Eligible employment" means an eligible employee employed by an employer located in New Jersey.

     "Employer located in New Jersey" means any partnership, limited liability company or corporation doing business in this State.

     "Graduation from a New Jersey institute of higher education" means to receive an undergraduate degree from a New Jersey institution of higher education.

     "New Jersey high school" means a high school located in New Jersey, whether private or public.

     "New Jersey institution of higher education" means an institution which qualifies as a public institution of higher education pursuant to N.J.S.18A:62-1 et seq., or an institution eligible for assistance pursuant to section 3 of P.L. 1979, c.132 (N.J.S.18A:72B-15 et seq.).

 

     2.    This act shall take effect immediately and apply to taxable years beginning after the date of enactment.

 

 

STATEMENT

 

     This bill provides a nonrefundable gross income tax credit in the
amount of $1,500 to resident New Jersey taxpayers who graduate from a New Jersey public or private high school and a New Jersey institute of higher education with a grade point average of 3.5 or higher and who are employed as full time employees working more than 25 hours per week for a New Jersey employer within two years following graduation from a New Jersey institution of higher education.  The bill's gross income tax credit is intended to create an incentive for individuals who graduate from a New Jersey high school to pursue their undergraduate degree in New Jersey and subsequently remain in the State and contribute to the New Jersey economy.

     The bill provides that an institute of higher education in New Jersey is any public or private not for profit university.  Additionally, to graduate from a New Jersey institution of higher graduation means to receive an undergraduate degree. 

     Finally, the taxpayer is eligible to claim this credit during the first five consecutive tax years so long as the employee fulfills the requirements of this bill in each of the tax years that the credit is claimed.