ASSEMBLY, No. 1160

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen COHEN and SULIGA

An Act allowing a deduction under the gross income tax for certain tuition expenses and supplementing chapter 3 of Title 54A of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. A taxpayer with a gross income for the taxable year of $85,000 or less shall be allowed to deduct from gross income amounts paid by the taxpayer during the taxable year for tuition and fee expenses for the taxpayer, the taxpayer's spouse and the taxpayer's dependents as a matriculated student at a public or independent institution of higher education accredited by a nationally recognized accrediting agency or association which has been recognized by the United States Secretary of Education for the award of such status.

    2. This act shall take effect immediately and apply to taxable years commencing after its enactment.

STATEMENT

    This bill allows taxpayers who have gross incomes of $85,000 or less in a taxable year to deduct higher education tuition and fee expenses paid in that year from their gross income for that taxable year. The bill allows the deduction for tuition and fees for the taxpayer, the taxpayer's spouse and the taxpayer's dependents paid to accredited higher education institutions as recognized by the United States Secretary of Education. Under current law, there is no deduction for higher education tuition and fees expenses.

Allows a gross income tax deduction for certain higher education tuition and fee expenses.