ASSEMBLY, No. 2449







By Assemblyman O'TOOLE



An Act increasing the personal deduction under the gross income tax for support of dependents attending post-secondary institutions of higher education, amending P.L.1976, c.84.


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


    1. Section 1 of P.L.1976, c.84 (C.54A:3-1.1) is amended to read as follows:

    In addition to the exemptions allowed under N.J.S.54A:3-1, each taxpayer shall be allowed an additional exemption which may be taken as a deduction from [his] the taxpayer's New Jersey gross income in amount of [$1,000.00] $5,000 for each dependent under the age of 22 years who is attending an accredited post-secondary institution of higher education on a full time basis and for whom the taxpayer paid one-half or more of the costs of tuition and maintenance of the dependent's attendance at such institution.

(cf: P.L.1976, c.84, s.1)


    2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 1997.





    This bill increases the higher education deduction against the gross income tax from $1,000 to $5,000. This deduction is available to taxpayers who provide one-half or more of the cost of a dependent's tuition and maintenance at an accredited post-secondary institution of higher education. The current $1,000 deduction has not been changed since originally enacted in 1976.



Increases gross income tax deduction for dependent's higher education.