Bill Text: NJ S943 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes gross income tax credit for full-time tuition cost at certain New Jersey institutions of post-secondary education.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-31 - Introduced in the Senate, Referred to Senate Higher Education Committee [S943 Detail]
Download: New_Jersey-2022-S943-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Establishes gross income tax credit for full-time tuition cost at certain New Jersey institutions of post-secondary education.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a gross income tax credit for the cost of full-time tuition for certain taxpayers and their dependents attending certain institutions of post-secondary education in New Jersey, 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 taxpayer who has a gross income of $150,000 or less during the taxable year and 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. A credit shall not 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 a gross income of $150,000 or less during the taxable year and who has paid the 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. A credit shall not be allowed under this subsection for a taxable year if the taxpayer is a dependent of another taxpayer who claims a credit for the taxpayer's costs of tuition under subsection a. of this section for that taxable year.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill expands opportunities for New Jersey residents to pursue post-secondary education by establishing a gross income tax credit for the costs of full-time tuition at New Jersey institutions of higher education, county colleges and accredited post-secondary training schools. The tax credit is equal to 10 percent of tuition costs of up to $10,000 paid by a taxpayer with a gross income not exceeding $150,000 either for the taxpayer or a resident dependent under 22 years of age.
Tuition and fees for New Jersey State college students exceed the national average by 26 percent. The College Board relates in its "Trends in College Pricing 2017" report that the national average cost of in-state tuition and fees at four-year public colleges is $9,970 for academic year 2017-2018. The New Jersey Secretary of Higher Education conveys that the equivalent average for New Jersey senior public colleges is $13,464.
The State's 19 county community colleges provide access to higher education for many New Jersey residents who might otherwise be denied the benefits of a college education. Post-secondary business, technical, trade or vocational schools, on the other hand, allow the non-college bound to improve their occupational and economic chances by acquiring specialized skills.
