STATE OF NEW JERSEY
213th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2008 SESSION
Sponsored by:
Assemblyman JOSEPH VAS
District 19 (Middlesex)
Co-Sponsored by:
Assemblymen Prieto, Fisher, Scalera, Assemblywomen Oliver, Cruz-Perez, Quigley, Assemblymen Chivukula, McKeon, Wisniewski, Assemblywoman Greenstein, Assemblyman Coutinho and Assemblywoman Wagner
SYNOPSIS
Allows a gross income tax credit for textbook purchases by full-time undergraduate students 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 allowing a gross income tax credit for textbooks purchased by taxpayers and their dependents enrolled as full-time undergraduate students at 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 for 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 undergraduate 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 textbooks purchased, paid by the taxpayer during the taxable year, up to a maximum credit of $100 per taxable year. A resident taxpayer who has gross income of $150,000 or less for the taxable year and who has paid one-half or more of the costs of tuition for the taxpayer's full-time undergraduate 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 textbooks purchased, paid by the taxpayer during the taxable year, up to a maximum credit of $100 per taxable year.
b. For the purposes of this section: "Textbook" means any reading material, printed or electronic, that the educational institution, college or school requires the student to purchase for any course in which the student is registered.
2. This act shall take effect immediately and shall apply to taxable years beginning after enactment.
STATEMENT
This bill establishes a gross income tax credit for textbooks purchased by taxpayers and their dependents enrolled as full-time undergraduate students at four-year institutions of higher education, county colleges or accredited post-secondary schools in New Jersey. The tax credit is equal to 10% of textbook costs of up to $1,000 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. It applies only to full-time undergraduate students. The term "textbook" is defined as the reading materials required for courses by educational institutions, excluding non-required texts and other non-text supplies students purchase for their education. Taxpayers with gross incomes of up to $150,000 are eligible for the tax credit.
The credit will help ease the financial burden associated with educational costs for New Jersey residents and taxpayers. The credit will also encourage taxpayers and their dependents to choose New Jersey educational institutions over out-of-State institutions.