Bill > S3035

Introduced Session

This bill directs the Director of the Division of Taxation in the Department of the Treasury, in consultation with the Commissioner of Education, to establish a program to provide tax credits to taxpayers that make contributions to a selected student support organization that awards scholarships for eligible students to attend participating nonpublic schools. The program established by the director would allow a taxpayer to claim a tax credit against the corporate business tax or personal gross income tax equal to 75 percent of any contribution made to a student support organization; in the case of the gross income tax credit, a taxpayer is required to contribute a minimum of $100 to a student support organization in order to claim a tax credit. The value of a credit for an individual taxpayer in a given year or privilege period is not permitted to exceed the lesser of 50 percent of the taxpayer's total tax liability or $1,000,000 for a tax credit against the corporate business tax or $100,000 for a credit against the personal gross income tax. The maximum amount of tax credits allowable in each State fiscal year may not exceed $37.5 million. The Director of the Division of Taxation, in consultation with the Commissioner of Education, is responsible for the administration of the program. The Director of the Division of Taxation is to select one student support organization, draft regulations to implement the program, and submit an annual report to the Governor and Legislature on the implementation and results of the program. The regulations are to include a requirement that tax credits issued under the provision of the bill will be issued equitably among the counties. The Director of Taxation, in consultation with the Commissioner of Education, is also required to establish a five-person oversight committee to oversee the operation of the student support organization. The student support organization would receive contributions made to the program, spending no more than five percent of contributions on administrative costs, and distributing the remaining 95 percent as scholarships for eligible families. The student support organization is required to verify student eligibility prior to awarding a scholarship, not limit scholarships to students in a certain school or region, award scholarships equally to all eligible students who apply in a given school year, and provide a student with a scholarship that is not less than the amount the student received in the prior school year. The student support organization is to publicize the program, carry forward no more than 20 percent of funds each year, and submit an annual report to the State Treasurer and the Commissioner of Education. The student support organization is required to contract annually for an independent financial audit of the program and transmit a copy of the financial audit to the Division of Taxation, the State Treasurer, and the Commissioner of Education no later than December 1 of each year. To be eligible for a scholarship from the student support organization, a student is to reside in New Jersey and intend to enroll in grades kindergarten through 12 in the next school year. A student is required to have a household income that does not exceed the federal income guidelines for reduced price lunch under the National School Lunch Program multiplied by 2.6. To participate in the program, a school is to: be located in New Jersey; be a nonpublic school that is eligible to participate in the National School Lunch Program; comply with all federal and State anti-discrimination statutes; and comply with the "Anti-Bullying Bill of Rights Act," P.L.2002, c.83 (C.18:A37-13 et seq.). The bill also includes language requiring that the provisions of the bill not supersede, impact, or interfere with the full funding in each State fiscal year necessary to satisfy the requirement of the New Jersey Constitution that the Legislature provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all children in the State between 5 and 18 years of age; the full funding of the veterans' $250 property tax deduction, required to be provided to eligible veterans pursuant to the State Constitution; the senior citizens' and disabled persons' $250 property tax deduction authorized by the State Constitution; the full payment of contributions required by law to be made to the State-administered retirement systems; and the full funding of the Stay NJ property tax credit program established in P.L.2023, c.75 (C.54:4-8.75a et seq.). No later than six months after the conclusion of the fourth school year in which scholarships are awarded under the program, the Department of the Treasury, in conjunction with the Department of Education, any relevant governmental organization, and stakeholders from the nonpublic school community, is required to submit a report to the Governor and Legislature that will include: information on the number of scholarships and the amount of tax credits awarded under the program; recommendations on improvements to the program; and the number of nonpublic school closures five years prior to awarding any scholarships under the program compared to closures after the implementation of the program. The Department of Education is required to establish a Student Support Grant Program to provide grants to school districts in which at least 50 percent of the student population is eligible for free or reduced price lunch under the National School Lunch Program. The grant funding is for student support services, including tutoring programs or opportunities, teacher retention bonuses, or the provision of mental health or counseling services. The department will establish an application process for the grants. As part of that process, the eligible school districts are required to demonstrate how the funding will assist the district in providing needed support to its students. The bill provides that the Legislature will annually appropriate from the General Fund to the Department of Education $37.5 million to fund the grant program.

AI Summary

Committee Categories

Vin Gopal (D)*,  Joe Lagana (D)*,  Tony Bucco (R),  Gordon Johnson (D),  John McKeon (D),  Holly Schepisi (R),  Bob Singer (R), 

Withdrawn from Consideration (on 06/10/2024)

Official Document