SENATE, No. 2135

 

STATE OF NEW JERSEY

 

INTRODUCED JUNE 5, 1997

 

 

By Senator BRYANT

 

 

An Act establishing a gross income tax credit for taxpayers and their dependents attending New Jersey county colleges, 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 paid one-half or more of the costs of tuition and maintenance of a dependent under the age of 22 years in attendance at a New Jersey county college on a full time basis 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 the amount of the costs of tuition and maintenance paid up to a maximum credit of $750. 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.

    b. A taxpayer who has paid costs of tuition and maintenance for the taxpayer's attendance at a New Jersey county college on a full time basis 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 the amount of the costs of tuition and maintenance paid up to a maximum credit of $750. No credit shall be allowed under this subsection for a taxable year if the taxpayer in attendance at a county college is a dependent of another taxpayer who claims a credit for the taxpayer in attendance at a county college 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 encourages greater opportunities for attendance at county colleges by establishing a $750 gross income tax credit for payment of tuition and maintenance costs for full time attendance at a New Jersey county college paid by a taxpayer either for a dependent under 22 years of age or for the taxpayer's own full time attendance at a county college.

    The tax credit of $750 for full time attendance at a New Jersey county college can provide a tax savings that is about equal to the average annual New Jersey county college tuition for a full-time semester of 12 credits per semester. The county community college system, comprised of 19 institutions, provides access to higher education for a broad range of New Jersey residents who might otherwise be denied the benefits of a college education. This tax credit can provide a substantial financial subsidy for those taxpayers who are pursuing this gateway to a post-secondary education for themselves or their dependents.

 

 

                             

 

Establishes a gross income tax credit for full time enrollment at New Jersey county colleges.