ASSEMBLY BUDGET COMMITTEE
STATEMENT TO
ASSEMBLY, No. 12
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 22, 2021
The Assembly Budget Committee reports favorably Assembly Bill No. 12, with committee amendments.
As amended, this bill, which is to be cited as the “New Jersey College Affordability Act,” provides that a New Jersey Better Educational Savings Trust (NJBEST) program account when it is initially opened by a taxpayer with gross income of $75,000 or less will be eligible for a one-time grant of up to $750 in a dollar-for-dollar match of the initial deposit to the account.
The bill allows a gross income tax deduction for taxpayers with gross income of $200,000 or less in the amounts contributed to an account established under the New Jersey Better Educational Savings Trust (NJBEST) Program. The bill limits the deduction, however, to $10,000 in contributions.
Section 529 of the federal Internal Revenue Code allows states to establish qualified tuition programs under which individuals can make contributions to accounts established for beneficiaries for the beneficiaries’ qualified higher education expenses. The NJBEST Program is New Jersey’s State-sponsored 529 plan.
The bill also allows a taxpayer with gross income of $200,000 or less to deduct from gross income the amount of principal and interest payments paid on a student loan under the New Jersey College Loans to Assist State Students (NJCLASS) Loan Program, not to exceed $2,500.
Lastly, the bill allows a taxpayer with gross income
of $200,000 or less to deduct from gross income the amounts paid by the
taxpayer to an in-State institution of higher education for tuition costs
related to the taxpayer’s enrollment or attendance at the institution of higher
education or related to the enrollment or attendance of a spouse or dependent
of the taxpayer at the institution. Under the bill, the deduction would not
exceed $10,000.
COMMITTEE AMENDMENTS:
The committee amended the bill to provide the short title designation of the “New Jersey College Affordability Act.”
FISCAL IMPACT:
Fiscal information for this bill is currently unavailable.