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  • NJ A1477
  • Provides gross income tax credit for certain contributions to New Jersey Better Educational Savings Trust (NJBEST) program.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill provides a credit against the gross income tax for certain contributions to the New Jersey Better Educational Savings Trust (NJBEST) program. Under the bill, taxpayers having gross income not in excess of $500,000, or not in excess of $250,000 if married filing separately, are allowed a credit against the gross income tax in an amount equal to 5% of up to $5,000 of contributions, or up to $2,500 of contributions if married filing separately, that are made during the taxable year to one or more NJBEST college savings accounts. The NJBEST program is New Jersey's IRC Section 529 qualified college savings program. Federal tax law allows contributions of federally taxed income to accounts established for the beneficiaries' qualified higher education expenses. Account investment earnings are not federally taxed until withdrawn, and if the earnings are used for qualified higher educational expenses they are never taxed. Currently, New Jersey matches those federal tax advantages, but unlike a number of other states does not offer tax incentives for contributions made to college savings accounts. This bill establishes a state-level incentive for contributions in New Jersey. In doing so, it encourages individuals and families to put more money aside to meet the ever increasing cost of higher education. The bill takes effect immediately and provides for the credit to apply to contributions made during taxable years beginning on or after January 1 next following the date of enactment.
Not specified
Introduced, Referred to Assembly Appropriations Committee  (on 1/27/2016)
 
 
Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Appropriations Committee
Date Motion Yea Nay Other
None specified