Bill > S4956

This bill provides a gross income tax deduction for New Jersey residents who graduate from in-state high schools or colleges, allowing them to deduct all salaries, wages, and other compensation received during the two consecutive taxable years immediately following their graduation. To qualify, taxpayers must reside in New Jersey for the entire taxable year in which they claim the deduction, and they can claim the deduction multiple times—for example, after graduating from both high school and college. The bill specifically defines "graduation" as the date when an official diploma or bachelor's degree is awarded, and it clarifies the types of institutions that qualify, including public universities like Rutgers and State colleges, as well as private, nonprofit institutions in New Jersey that are regionally accredited. The tax deduction is intended to provide financial support for recent graduates and potentially encourage them to remain in the state after completing their education. The bill will take effect immediately and apply to taxable years beginning on or after the January 1 following its enactment.

Budget and Finance

https://www.njleg.state.nj.us/bill-search/2024/S4956