Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (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. 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 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. No credit shall 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 after 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 more than 60 percent. The College Board relays in its “Trends in College Pricing” report that the national average in-state tuition at four-year public colleges is $6,185 for academic year 2007-2008 and $9,984 in New Jersey.
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.